Saturday, March 21, 2009

$INDU update for 03.21.2009


Monthly chart shows short term bottom in place for now. Will the bulls manage to close the month above the key LIS and the low of October 2002? Technically, there is no buy signal/pattern evident on this timeframe.

Weekly chart shows the bullish engulfing candle pattern holding support for now. This week's trading session seems to have fizzled out, as evidenced by the shooting star type candle pattern. When met with the resistance above, the bulls encountered selling pressure, and were unable to close the week above this key LIS and November 2008 low, where old support became new resistance.

Daily chart better shows the selling pressure as the market approached the key LIS and s/r of November 2008. This is shaping up to be a potential "blue ice failure" pattern if the bulls are unable to regain upside traction next week.

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