Dow Jones in a triangle
- Dow Jones futures daily chart is in a triangle pattern. and trading near the resistance line.
- The stochastic indicator for daily chart is approaching oversold region. One main thing to note is if you plot the stochastic indicator for daily time frame in dow jones futures chart, after the low of 9504 the indicator has gone to the oversold region main times but the index never went to the 9504 levels, this shows the presence of some positive divergence.
- So according to the above observation two things are possible, Price makes another higher low from here close to the supporting line of the triangle and then a reversal from there resulting in a breakout from this triangle OR a breakout from here itself. Since it is a triangle a breakdown of the triangle is also possible.
nice post as usual.
ReplyDeletefast & full stochastic indicator on DOW spot is in O.B.
Dow spot is trading in its Friday's(3rd sept) range only since last four days.
ReplyDeleteBoatload o Charts
ReplyDeleteEnjoy, Sign up as a follower. The new moon is acting, the prior ratio chart extreme values have pretty much clocked out although a day or three more of Frog Boil could certainly occur.
Black swan are delivered by cruise missile on the weekends and holidays.
I rarely do the XLF chart, but first time I put the PRS 133 on it and it looks bearish.
I think HBB will continue to move money around, ramping particular issues, hitting short stops, and then after enough bears are just ready to "wait this one out" a few near limit down days in a row, maybe 3 of a 5 day week.
http://oahutrading.blogspot.com/2010/09/boatload-ocharts.html
Thanx C.Kumar
ReplyDelete