Saturday, January 26, 2008

$INDU Update for 01.26.2008


Monthly chart shows the index found support and early buyers off the old key LIS of 11,750. No buy signal/pattern evident on this timeframe.

Weekly chart shows early bulls were met with resistance at the old LIS of 12,518 area, where "old support becomes new resistance". Last week's price action indicates indecision between the bulls and the bears. No buy signal/pattern evident on this timeframe.

Daily chart shows early buyers gapping up prices at the open, but were soon met with resistance and selling at a key LIS. Friday's price action resulted in a bearish engulfing candle pattern, which retraced all of Thursday's gains and part of Wednesday's gains. Look for a test of the current low. IF the index remains stuck in a consolidation/trading range, THEN look for lower low to come.

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