Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

Romanian Market. This is a section dedicated to Romanian stocks and indices.

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Wednesday, September 21, 2011

Dow Jones Industrial Average (DJIA) Technical Analysis 2011.09.21

How is the market going to react AFTER the FED decision?

Wave ii of the down impulse move of wave (v) completed yesterday, as it created a higher high in at the $11,550 level.

Unlike last week, the low optimism of investors in reflected in the market through the sharp declines towards the end of the sessions. Technically speaking, we are focused on the $11,480-$11,550 resistance area that can establish a strong border between the uptrend or the downtrend that is due to come. The first strong support is set at $11,270 level (wave 4 through) and it is shortly followed by the $11,140 area.

VERY IMPORTANT: today at 14:15 ET the FED will announce their decisions regarding a future “rescue” plan. This will provide high volatility in the markets and could breach the above mentioned resistance. However, the market direction after the news will have the most important “word” to say.

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