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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Friday, October 7, 2011

Dow Jones Industrial Average (DJIA) Technical Analysis 2011.10.07

Extremely bullish sentiment...

The reverse zone of yesterday turned out to be a fake one and the wedge pattern was also invalidated as the prices moved higher on strong bullish sentiment.

I am still looking though for a reversal or at least a down correction towards the 10,800 zone (half of the rally…if it stops in this area). There are also local lows and highs that strengthen this area as a support.



The main reason I am waiting for a correction (or a down move) is that there are 2 possible scenarios that indicate the same thing: the first is that we are still in a final wave down and we need one more swing down (in this case I am expecting a retest of the 10,550 support area) and the second is that if we are at the beginning of a up move we should see a wave b or 2 that are both corrective.  



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