Saturday, July 26, 2008

$INDU Update for 07.26.2008


Monthly chart shows index to be below the up trendline in place and below the January 2000 high. No buy signal/pattern evident on this timeframe.

Weekly chart shows profit-taking from last week's run up in the index. Index is currently below the 8ema, and also below the small LIS and January 2008 low (where old support becomes new resistance). Look to next week for better pattern development to determine whether this short term long has any legs, or whether it will end up in consolidation, which will support a move lower.

Daily chart better shows the resistance off the LIS (where old support becomes new resistance), which also happens to be the .382 fib level. Index is currently below all key moving averages. Friday's price action saw hesitation and consolidation. Look to next week to determine next move. We could be stuck in a large consolidation pattern/range before the next move.

No comments: