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, June 14, 2008

DJIA 6/13/08 STOCK MARKET TECHNICAL ANALYSIS


PRICE AND TURNOVER
Close 12,307.35
Change 165.77 (1.37%)
Volume 846.9M

MARKET BREADTH NYSE
Net Advancing Issues +1534
Net New High -117
Net Up Volume +2,394,880,104

TRENDS
*PROVISIONAL PRIMARY DOWNTREND | Directional wave | Prior support 11634 | Prior resistance 13136
*INTERMEDIATE DOWNTREND | Broken trendline | Directional wave | Prior Support 11731 | Resistance 13136
*SHORT TERM PROVISIONAL DOWNTREND | Directional wave | Prior support 12076 | Resistance 12610

TECHNICAL ANALYSIS
The inverted hammer which we called attention to yesterday lives up to its name when it is confirmed by today's higher close and higher intraday range. This means the Dow has found buying support at 12076 and could be in the early stage of a correction rally. It is not unreasonable to expect the index to retrace until around 12400 before resuming the downtrend.

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