September 2, 2010

Dow jones end of day analysis


  • 3rd Chart is the weekly chart. Price is trading below 50 and 20 week moving average.
  • Today's momentum and the way the index closed may take the index above these weekly moving averages. 
  • One more important thing is the pending negative cross in the weekly chart of 20 week ma below 50 week ma.. So even if the price moves above these MA the high may be limited to 10500 - 10600 area.
  • The 2nd chart is the daily chart, price has closed above 50 DMA. But just below 20 DMA. If index has good momentum in the following day's 20 DMA may move away from 50 DMA so that the negative cross in daily chart does not happen.

No comments:

Post a Comment