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).

Tuesday, April 8, 2008

DJIA 4/7/08 STOCK MARKET TECHNICAL ANALYSIS

OUTLOOK
Stocks end the first day of the earnings season [As Earnings Season Opens, Outlook Just Gets Worse|Reuters | 07 Apr 2008 | 03:01 PM ET] flat in light volume after gaining 124pts. Shrinking consumer borrowing [AP|Growth in Consumer Borrowing Slows|Monday April 7, 3:16 pm ET] and a recessionary view by the US Economic Bureau chief [U.S. Sliding into Recession: Head of Economic Bureau|News Associate | 07 Apr 2008 | 10:15 AM ET] weigh on todays intraday rally. The Dow is in a holding pattern near 12,800 faltering for the 4th consecutive trading session on noticeably declining turnover. But it remains above the advancing short term trendline having enough room to accomodate the current pause and even a brief correction. The critical level continues to be 12,800 and whether the approaching short term uptrend could gather enough momentum to carry it beyond resistance.

MARKET BREADTH
Net Adv Issues: +408 * Net New Highs: +67 * Net Up Volume: +1,024,658,842

TECHNICAL ANALYSIS
Primary consolidation * Secondary downtrend interrupted * Short term uptrend * Major support 11,600-11,700 * Minor support 12,200 * Resistance 12,800 * Rounding top on the weekly chart * Potential double bottom on the daily chart

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