August 23, 2010

Dow Jones futures before opening bell

  • Dow Jones futures is trading in a falling wedge pattern.
  • The support line of the wedge was tested and violated on friday when the index traded at 10140 levels But the index made a smart recovery to close well within the pattern.
  • Since the trend is down the chances of another attempt to break the support may happen again. other thing to note is that the price is approaching the apex of the pattern  so one may wait till a clear direction emerges before taking a position.

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