Sunday, December 14, 2008

$INDU Update for 12.14.2008


Monthly chart remains below all key moving averages and the down trendline in place. Bottoming tails on the last three candles indicate short term support in place. However, despite the short term support, the bulls have not been able to get much traction to the upside. This is looking more and more like a consolidation/trading range pattern being traced out. No buy signal/pattern evident on this timeframe.

Weekly chart shows last week's trading activity resulted in a doji candle pattern, indicating indecision between the bulls and the bears. The bulls and the bears managed to close the week pretty much where they started, which also happens to be where they closed the week before as well. Index remains well below all key moving averages, as well as all the down trendlines inplace. No strong buy signal/pattern evident on this timeframe.

Daily chart shows short term support holding for now, with the market tracing out higher highs and higher lows. However, there isn't much conviction either way. Price action indicates consolidation/trading range in place. Look for resistance to be at the October 14, 2008 high.

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