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).

Sunday, November 9, 2008

DJIA 11/7/08 WEEKLY MARKET REVIEW


PRICE AND TURNOVER
Close 8,943.81
Change +248.02 +2.85%
Volume 246,303,045

MARKET BREADTH NYSE
Net Advancing Issues 1340
Net New Highs -10
Net Up Volume 3,090,676,138

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
*DAILY CHART | SHORT TERM CONSOLIDATION | Prior support 8085 | Prior resistance 9711 | SYMMETRICAL TRIANGLE

CHART WATCH
The market index is trending down in the monthly and weekly time frames. Momentum in the primary trend is gaining while intermediate velocity flattens accounting for the developing congestion. The weekly chart unfolds a flag/pennant that appears as a triangle in the daily chart after forming a peak last Tuesday. Coming from a prior downtrend, these continuation patterns are likely to break to the downside. For now, due to the direction of the current downleg, we look at support levels in all time frames as immediate price objectives, i.e. 7177 | 7773 | 8085 |. A breach of these significant levels will warrant a review of these targets.

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