Market Technical View: DJIA Technical Analysis 2012.03.06

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.

Tuesday, March 6, 2012

DJIA Technical Analysis 2012.03.06

The DJIA broke the bull channel on yesterday’s session and set the market for more instability in the future days.

During the month of February the weakening trend was showed by the fail of the bulls to reach the upper limit of the channel. The conservative attitude of the investors is also signaling a potential top in this area.

In case there will be a correction in the future days, it will most probable be sharp as the bears will become dominant and the stop losses will be activated. The target levels are given by clusters made of previous local highs and lows and Fibonacci levels.