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, November 25, 2008

DJIA 11/24/08 ODR CONFIRMATION

TECHNICAL ANALYSIS
* PRIMARY DOWNTREND
* INTERMEDIATE DOWNTREND
* SHORT TERM DOWNTREND
* SUPPORT: 7368(Oct-2002) | 7449 (Nov-2008)
* RESISTANCE: 9653(Nov-2008) | 8600 (Potential)
* MACD: Downtrending | Steady
* MAs: Downtrending | Steady
* VOLUME: Contracts on higher close
* ODR : Today's higher trading range marks the second day of a rally.
* PRICE OBJECTIVES: Correction rally 8600 | Subsequent short term trough 6500

MARKET OUTLOOK
The Citigroup rescue and the announcement of the incoming administration's economic team provides the catalyst for today's higher HLC that confirms last Friday's ODR alert and marks the second day of a rally coming off a bounce near the support area. But volume contraction accompanying today's higher close is not encouraging. For now, we look at this advance as a countertrend rally to 8600 before eventually starting a new downleg that could hit 6500.

NEWS
AP Dow ends up nearly 400 after bailout of Citigroup Monday November 24, 6:16 pm ET By Tim Paradis
CNN Obama names his economic dream team Monday November 24, 3:19 pm ET By Jeanne Sahadi

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