- Dow Jones breaks an important support line in daily chart.
- Support line is also the neckline of a head and shoulders pattern in the same chart.
- Now if the day close near the low of this trading day, 10000 will be hard to defend for the bulls.
August 24, 2010
- Dow Futures seems to be getting support at 9969 as shown below in chart 1
CHART - 2
CHART - 1
- Falling wedge of dow jones futures has broken its support line.
- Next support comes at 10031, If that is broken index may start trading below 10000.
- Support areas are 10031, 9969, and 9852 on closing basis on 4 hour chart
- Reliance industries continue to look weak on charts.
- Stock has formed another bearish candlestick pattern(Bearish engulfing). And if the low of 958 is broken the stock may go down again. One should also watch 958 area carefully, since the stock is oversold this area may give support too.
- Earlier the stock broke 1007 area followed by a similar candlestick pattern as shown in the chart.
- LIVE INTRADAY CHART FOR RELIANCE INDUSTRIES
4 HOUR CHART
- Dow Jones closed down 39.21 or 0.38%.
- Dow Jones was resisted today at its 50 DMA.
- Index has a falling wedge with upside breakout possibility. It also shows another pattern with the index very close to its apex. So the traders will get a clear direction soon.
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