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.

Search This Blog

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.  

No comments:

Post a Comment