Monday, October 22, 2012

DJI Heading North or South?

Seeing last week DJI close down by more than 200 point, it reminded me it has been a while that it fluctuated between 13,000 to 13,500. This prompt me to take a look of the chart. My below study appear that, there were two possibility of 50% chances uptrend and 50% downside consolidation. So, will DJI going for much awaited correction soon? Or much awaited breakout? Will this happen before the Presidential Election (Nov 6) or after? From the chart, I included two triangle pattern theory. Ascending Triangle Breakout (green color) and Falling Triangle Correction (red color) and have draw up the zigzag pattern which looks match from this two chart pattern. Which will be the exact match?

Well, from the chart it show that the next important test for support will be (e) 13K (purple dotted line), this will be very critical support for uptrend. If this rebound strong than the market will be good to go beyond 13,600 and if this broken than be ready for downside. If it was going south, how low will it hit this time? 12k? 11k? 10k? 9k? Will this cripple our local mart upside? Let us follow closely this few weeks and hope the bear will not take over the control! 

Good Luck and All The Best!

No comments: