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).

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Tuesday, September 27, 2011

Dow Jones Industrial Average (DJIA) Technical Analysis 2011.09.27

Is this rally in its final stage?

As we thought on Friday (though without sufficient evidence at that moment), the 10,600 area support proved to be strong enough to reverse the price course for a few days.

On the futures market the price traveled beyond the 61,2% Fibonacci retracement but the key resistance level is at 11,267 (a former important low). If buyers fail to keep their bid steady we will be clearly heading for a bearish reversal, targeting the previous lows of 23rd September in the 10,550 area. A closer support is set in the 10,850 area.

The Elliott wave count positions the market in the second wave (wave 2) of a 5 wave downward structure. If this count is correct, this up move will not cross over the 11,550 level and, furthermore, the previous lows (10,550) should be breached.  

CONCLUSION: keep an eye on the price action around the 11,267 level!    

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