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).

Friday, April 11, 2008

DJIA 4/10/08 STOCK MARKET TECHNICAL ANALYSIS

OUTLOOK
The Dow closes fractionally higher despite conflicting economic developments - [AP|Retailers Post Sluggish Sales|Thursday April 10, 11:02 am ET] , [CNBC|US Economy Has Turned Down Sharply|Apr 10, 10:21 am ET] , [Trade Deficit Up; Jobless Claims Less Than Expected|Reuters | 10 Apr | 08:40 AM ET] , [AP|Gas, Diesel Prices Hit New Records|Apr 10, 1:49 pm ET] . Investors likewise react positively to Intel's ratings upgrade and raised first quarter earnings estimates from WalMart and Dupont [Intel, Wal-Mart Help Boost Stocks|CNBC | 10 Apr | 02:05 PM ET] . The 30 stock component index dips lower very early in the trading session but quickly recovers and advances by midday. It closes off its highs at 12581.98 up marginally by 0.44% on what CNBC's Bob Pisani characterizes as short covering and an oversold rally.[Bob Pisani reports|Apr. 11| 1:05 AM] . The intermediate trend has lost its directional tendency and joins the major trend in a sideways movement. I expect further selling on strength. The technical focus continues to be on the ascending minor trend and the major resistance.

PRICE AND TURNOVER
Close: 12,581.98 * Change: 54.72 (0.44%) * Volume: 639,844,928

MARKET BREADTH
Net Adv Issues: +810 * Net New Highs: -12 * Net Up Volume: +762,097,824

TECHNICAL ANALYSIS
Major consolidation * Intermediate consolidation * Minor uptrend * Major support 11,600 * Resistance 12,800 * Near term objective 12,800

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