- A broadening pattern is forming in Dow Jones hourly chart.
- Since it has come at the top of the trend it can be classified as a Broadening top formation.
- DOW JONES END OF DAY ANALYSIS
August 3, 2010
- Dow Jones Industrial Average closes up 208 points up or 1.99% Up
- Dow Jones has breaks out and closed above 10600.
- The second chart shows a trend line that may support the index on its way up.
- Staying above 10700 it may target 10900 were the next resistances may come.
- DOW JONES FUTURES TARGETS AND SUPPORT LEVELS
- Nifty futures hourly triangle has given two whipsaw trades and now it is playing out the third one.
- If NF falls below 5425 this will end up as a false break out. and the index will come into the triangle pattern.
- It is better to take a positional trade when the larger range breaks out.
- Dow Jones has crossed 10600 which was a good resistance area for the index.
- Today's closing is very important a successful close above 10600 is important for the bulls.
- Immediate target for the index is 10715 and on a successful close above this level can give 10900.
- Now If there is any dip from the current levels it should stop before 10380 levels. A breach of 10380 could be risky for the bulls.
- So the positional stop loss can be kept at 10380 on closing basis.
- RISING WEDGE OF DOW JONES FUTURES
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