If it opens in the red zone, bearish sentiment on the day trade and swing.
If it opens in the green zone, bearish sentiment on the day trade and swing.
WE FOUND SUPORT AT 49.95 - 50.00 AREA LAST WEEK ON DOW THOUGH IT IS A NICE ENGULFING BAR ON A DAILY TIME FRAME.UPSIDE MAYBE LIMITED IF WE FAIL TO BREAK ABOVE THE RESISTANCE AT 52.50 AREA.A BELOW 49.90 AREA AND WE MAY SEE 48.20 SUPPORT LEVEL COME INTO PLAY AND BELOW THAT WE HAVE SOME SUPPORT AT 46.70 AREA
We have made a down leg to meet the bull trend line, breaking it, then climbing back over it. The correction has now reached roughly 90% of the move down, also meeting resistance at a local trendline across the recent highs. I'm overall bearish, and will be looking to close my short around the the daily support area marked on the chart, after that level is reached...
There is good short opportunity on DOW. Two harmonic patterns: BAT and butterfly with D-points nearly on same area.
Resistance area is good for stop placement and provides excellent risk versus reward.
From the low of July 2011, we can see that we are in the 4th wave of the final leg of bullishness.
Wave 4 still has a small leg to the downside in order to complete the necessary 5 waves to finish the triangle.
42.50 is the apt place to start buying the stock for a target of 60+.
For a detailed wave count, click on
wave-analysis.blogspot.in
This is experimental indicator which would indicate potential change in trend and going long somewhere here.
Its based on the only thing which makes sense in the market to me which is: most traders loose - the only truth in the market.
