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Saturday, June 18, 2011

Dow Jones Formed lower low and still bearish


Observation
1) Trendline - Downtrend - Bearish
2) Formed lower low- Bearish
3) MACD - breach below 0 and bearish
4) RSI - Touching and floating around 30% ( undetermined)
5) Sto - Kissing and floating above 20% ( undetermined)
6) ADX - high momentum and bearish ( Free Fall ??)
7) Candle Stick - Shooting Star ( Bearish)

Conclusion
Yesterday it formed a shooting star just after a few days of rebound. Will this become another point for bearish reversal and formed lower high and retrace further down. Just prepare your stop loss.

Resistance at 12085 ( New Resistance)
New Support at 11857 ( Already broken the previous support 12085 which i mention last June 6) and next support will be 11705

1 comment:

  1. AnonymousJune 18, 2011

    Edwin, this is not a shooting star. A shooting star is form in a uptrend. Dow still a down trend. I will call this an inverted hammer...bull and bear fighting and bear win 80% for this particular candle. Next day will confirm if bear continue to win or bull will overcome it and go higher.

    Just my 2 cent worth.

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