Sunday, March 15, 2009

$INDU Update for 03.15.2009


Monthly chart shows that the low made last week at the 1.618 fib level to be holding for now. The aggressive bulls have managed to step back into the market and take the index up to close above the key LIS and October 2002 low. Only time will tell if they are able to keep it up above this level and proceed higher. There are still two weeks remaining before the month of March 2009 is over. Anything can happen in two weeks time.

Weekly chart shows a bullish engulfing candle pattern, indicating that the short term sentiment has changed from down to up. Aggressive bulls stepped back into the market and managed to close the index near its highs for the week. This support was made with regular divergence seen on the CCI momentum indicator. There is still no buy signal/pattern evident on this timeframe. However, one should be on the lookout for signals of bulls meeting resistance, or for renewed buying strength from the bulls and for a buy signal/pattern to materialize.

Daily chart shows that the target 2 at 1.618 fib level held as support. Initial resistance is directly above at the key LIS of prior support (old support becomes new resistance). This also coincides with the .382 fib area of the whole move down from the January 2009 high. It also happens to be right at the down trendline in place. Look to next week for some consolidation and retracement of the whole move up. When the index does indeed pull back, THEN look for buy signal/pattern setup for swing long.

No comments: