June 18, 2010

Dow jones analysis after closing bell





  • Dow jones is now marching towards the 50% retracement of it fall from 11250 to 9757 
  • Dow had a small dip today after it broke its hourly trend line. And it went down till 10330.
  • 10330 being earlier resistance gave it support as expected. But on seeing the amount of negative divergence i thought that area will not hold. But dow jones took support there 
  • And one more important thing is that this is the third consecutive close above the 200 day moving average which is good news for the bulls.
  • But the 20 day moving average is still below the 200 day moving average which is the last hope for the bears for the short term.

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