- Ford gave a clean breakdown from a trend line in weekly chart.
- Price has closed below 50 week moving average.
- Immediate support for the stock is the last swing low 13.75 and the Golden ratio at 13.25 level.
- Unless a big turnaround comes Medium term looks weak for F.
- BEARISH ENGULFING OF IWM
June 4, 2011
- IWM Weekly chart has given another bearish engulfing for bears.
- Price has also closed below its 20 week moving average.
- But daily chart shows a chance for a small bounce. Price is at a support line and the lower Bollinger band. Daily candle looks like a pin bar reversal candle. So combination of these things might result in a small trading bounce.
- One more thing to note is that price after giving the first bearish engulfing did go to 85 levels before selling off. So we may expect a similar price action to happen.
- But the medium term looks bearish.
- DOW JONES ANALYSIS AFTER CLOSING BELL
- First chart shows Dow closing near the previous support level of 12090 - 12110.
- Breaking below this level may take Dow to 11500 levels in the short term.
- Price has closed below its 100 Day Moving Average. But Stochastic indicator is showing Oversold reading which might result in a bounce. If price holds 12090 and come back to close above 100 DMA then we may see a good turn around.
- Hour chart is getting resisted at 100 Hour moving average. So good up move can be seen on closing above this level.