Reversal Pattern Completes...
The Dow ended last Friday up 38 points and up a total of 279 points last week, completing the important follow up that I mentioned last week.
The Dow is now at at the top of its short term neutral channel that I mentioned last week and going by the healthy rebound and the bullish divergence on the RSI and stochastics, I would see the Dow challenging its 200MA line once again this week. The Dow failed to break the 200MA resistance level 2 weeks ago, leading to a dangerous drop and if it fails again this time round, we could see the Dow make another tumble. However, with the strong technical indications that we are getting, as long as the Dow breaks the 200MA resistance zone, we should see it go back up to challenge the 11,000 points level again.
For now, the Dow remains in a short term neutral trend, intermediate bear trend and a primary bull trend.
The Dow is now at at the top of its short term neutral channel that I mentioned last week and going by the healthy rebound and the bullish divergence on the RSI and stochastics, I would see the Dow challenging its 200MA line once again this week. The Dow failed to break the 200MA resistance level 2 weeks ago, leading to a dangerous drop and if it fails again this time round, we could see the Dow make another tumble. However, with the strong technical indications that we are getting, as long as the Dow breaks the 200MA resistance zone, we should see it go back up to challenge the 11,000 points level again.
For now, the Dow remains in a short term neutral trend, intermediate bear trend and a primary bull trend.
posted by Jason Ng at 3:44 AM
0 Comments:
Post a Comment
<< Home