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).

Wednesday, April 23, 2008

DJIA 4/22/08 STOCK MARKET TECHNICAL ANALYSIS

OUTLOOK
The market drops a further 105 pts choosing to ignore mostly in-line and better than expected earnings announcements. [Briefing.com|Live Market Analysis]. Dow components AT&T, Du Pont, and McDonalds report quarterly results and guidance. [AP|AT&T 1Q profit up 22 percent on strong wireless growth|Tue April 22, 12:48 pm ET] , [AP|McDonald's 1Q profit rises on strong int'l sales|Tue April 22, 10:14 am ET]. Headlines on U.S. housing data and commodity prices are not a bit encouraging. [AP|Existing home sales decline as housing slump continues|Tue April 22, 12:29 pm ET] , [AP|Oil nears $120|Tue April 22, 1:56 pm ET]. Today's lower close and trading range affirm that the Dow hit a new resistance level on Fri Apr-18 at 12,900. It also ushers in a technical correction that, for now, can be reasonably expected to reverse at or near 12500 - the trendline support. Our keen interest remains on whether the momentum of the short term uptrend can wipe out the intermediate declining trend.

PRICE AND TURNOVER
Close: 12,720.23 * Change: -104.79 (-0.82%) * Volume: 612.7M

MARKET BREADTH
Net Adv Issues: -1372 * Net New Highs: -23 * Net Up Volume: -1,687,835,400

TECHNICAL ANALYSIS
Major consolidation * Intermediate downtrend * Short term uptrend * Support 12270 * Resistance 12900 * Downswing objective 12500

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