Sunday, April 06, 2008

$INDU Update for 04.06.2008


Monthly chart shows March 2008 trading activity resulted in a doji, indicating indecision between the bulls and the bears. The support is right at the January 2000 high and key LIS (old resistance becomes new support). The current support was also made 3 months from the October 2007 high (3 is a fibonacci number).

Weekly chart better shows the current support off the key LIS. Thus far, the move off the January 22, 2008 low looks to be sideways consolidation. As a matter of interest - January 22 can be viewed as 122 (which is close to a 1.27 fib retracement level).

Daily chart shows upside hesitation towards the end of last week, as represented by the 3 spinning top/doji type of candle patterns. Current resistance is right at the prior key s/r. Next week should give better indication of direction. IF this is indeed a consolidation/trading range, THEN we should make another run for the low and lower.

No comments: