Dow Jones (12307)
Intermediate trend: Bearish
In the previous review (Dow was at 12876) on 13th May, I said “The Dow has touched 13191 as against our target of 13200 & once again fallen back in a trading range of 12700-13000; Is it an end of the corrective rally started from Mar low? The answer lies in breaking of resistance zone of 13190-13220, if failed to do so, the downside till 12200-12050 looks certain”.
Within the next 4 trading sessions, more precisely on 19th May, the Dow had attempted to break the resistance zone of 13190-13200. However, it could achieved only 13137 and given up. Since then it has moved down, slowly and steadily, and seen 12029 on 11th June 2008; exactly on our target i.e. 12050.
Near term view: At present, the trading is still confined to falling channel. (See chart). As long as the Dow is trading below 12370, highest value of the channel, the current downtrend will persist, may be retest of 12k is possible. If broken above 12370, expect recovery efforts till 12602.
In the previous review (Dow was at 12876) on 13th May, I said “The Dow has touched 13191 as against our target of 13200 & once again fallen back in a trading range of 12700-13000; Is it an end of the corrective rally started from Mar low? The answer lies in breaking of resistance zone of 13190-13220, if failed to do so, the downside till 12200-12050 looks certain”.
Within the next 4 trading sessions, more precisely on 19th May, the Dow had attempted to break the resistance zone of 13190-13200. However, it could achieved only 13137 and given up. Since then it has moved down, slowly and steadily, and seen 12029 on 11th June 2008; exactly on our target i.e. 12050.
Near term view: At present, the trading is still confined to falling channel. (See chart). As long as the Dow is trading below 12370, highest value of the channel, the current downtrend will persist, may be retest of 12k is possible. If broken above 12370, expect recovery efforts till 12602.
