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).

Sunday, March 16, 2008

DJIA 3/14/08 WEEKLY MARKET REVIEW



MARKET BREADTH (NYSE)
Net adv/dec issues: -2,221
Net new highs/lows: -196
Net up/down volume: -110,069,721

TECHNICAL ANALYSIS
Trends: Major consolidation, intermediate downtrend, short term downtrend
Core Support: 12,000 Resistance 14,200
Immediate Support: 11,600 Resistance: 12,800

OUTLOOK
The Dow declines 1.60% for the day but manages to end fractionally higher by 0.48% for the week. The Dow continues its intermediate and short term descent and the support levels increase in significance. The following issues remain causes for concern: (a) a penetrating close below the core support of 12,000 in the weekly chart signals a potential 800 pt drop to 11,200, (b) in the daily time frame, the intermediate trend shows a potential measured move to 10,750 if the index drops below 11,600.

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