DOW JONES Analysis after closing bell
- Price gave up all of yesterday's gain and closed 178 points down.
- Now if one plots Fibonacci retrace levels for the rise from 11555 to 12875, Price is near its 78.6% and hour charts are showing positive divergence without much effect though.
- If 78.6% too gets broken then comes the all important 200 day moving average.
- If the positive divergence takes effect we may see a bounce from between 200 DMA and 78.6% level. So some more selling is left before we see a bounce.
- SEE THE EFFECTIVE OF PIN BAR ON DOW JONES IN THIS POST
The fact that all the gains were given up shows how ill this market is.
ReplyDeleteLooks to me like a fractal of the 2007 high:
http://swingtradersedge.blogspot.com/2011/06/party-like-its-2007.html
I agree there is 200SMA/200EMA and a good zone of support coming in here. However, bigger picture looks like we have seen a major high. Thoughts?
Thanks
Austin
@Austin
ReplyDeleteI have posted a similar view on Dow Jones few days back, DOW JONES MONTHLY CHART.
But the only problem is the consensus. The sell off is too obvious with fundamentals and technical's Pointing in the same direction and that's when Market does something opposite. Lets see how price reacts at 200 DMA. The quality of the bounce may give some clues.