January 19, 2013

DOW JONES Triple Divergence

  • Dow Jones closes near the resistance line.
  • Second chart shows whenever prices has made newer high's it does not last long. Price makes an up move it goes into a range and a correction follows. This time too price may give a breakout and a range may follow, But the correction this time may be bigger than the last two dips.
  • Expecting bigger correction because of the Triple divergence in Weekly MACD. Price if gets resisted at the channel line will confirm this one. Triple divergence is stronger than the Original divergence so bears can expect a bigger fall if price gets resisted at the channel resistance.

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