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 27, 2008

DJIA 10/24/08 WEEKLY MARKET REVIEW


PRICE AND TURNOVER
Close 8,378.95 
Change -312.3 -3.59%
Volume 335,678,907

MARKET BREADTH NYSE
Net Advancing Issues -2026
Net New Highs -1006
Net Up Volume -313,713,280

MULTIPLE TIME FRAME ANALYSIS
*MONTHLY CHART | PRIMARY DOWNTREND | Prior support 7177 | Prior resistance 14078
*WEEKLY CHART | INTERMEDIATE DOWNTREND | Prior support 7773 | Prior resistance 11867 | PENNANT PATTERN
*DAILY CHART | SHORT TERM CONSOLIDATION | Prior support 7773 | Prior resistance 9794 | SYMMETRICAL TRIANGLE BREAKS TO THE DOWNSIDE TO RESUME DECLINE

CHART WATCH
A pennant is developing in the weekly chart which is reasonably expected to break in the direction of the prevailing trend. The minor consolidation appearing in the daily chart breaks to the downside insinuating a near term TP of 7000 thereabouts. These breaks bring us closer to a test of the 7177 support level of 2002. It is reasonable to expect considerable buying support to appear at this level so we must watch closely whether buyers or sellers prevail in the aftermath.

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