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).

Monday, October 20, 2008

DJIA 10/17/08 WEEKLY MARKET REVIEW


PRICE AND TURNOVER
Close 8,852.22 
Change -777.68 -6.98%
Volume 353,395,600

MARKET BREADTH NYSE
Net Advancing Issues 358
Net New Highs -164
Net Up Volume -372,780,557

TRENDS
*PRIMARY DOWNTREND | Directional wave | Prior support 7177 (2002) | Prior resistance 14078 (2007)
*INTERMEDIATE DOWNTREND | Directional wave | Prior support 10827-BROKEN | Prior resistance 11867
*SHORT TERM DOWNTREND | Directional wave | Prior support 7882 | Prior resistance 9794

CHART WATCH
On the daily chart, the critical level is 7882 which is the 2 week low. On the monthly chart, we see a more ominous support of 7177 which is the low of 2002. In the last 2 weeks, we see the index developing a potential triangle pattern in the daily chart. Considering that all the important trends are declining, odds are in favor that this minor consolidation is resolved to the downside.

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