This blog is committed to the serious study and valid understanding of technical analysis and its objective application to stock selection, risk management and execution primarily in the context of trading stocks listed in the Philippine Stock Exchange (PSE).

Saturday, January 5, 2008

DJIA, 1/4/08

Here we go !! .. Dow crashes 565 pts or 4.23% in one week !! .. The index breaks the neckline to complete the head and shoulders pattern on the weekly chart .. really UGLY .. The pattern suggests a possible revisit to the March06 support of 12110 .. The market also reinforces the provisional Sep07 downtrend line when it fell below the mid Nov07 support of 12980 ensuring that the next trough is a lower low .. The next critical levels to watch out for are the neckline which could reverse its role as resistance and the major support level of 12110 .. Bulls and longs step aside, for now bears and shorts rule !!

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