The monthly chart on the DOW gives us the real picture where daily fluctuations do not distract. We defended in March 2009 the support line made a bit to steep recovery but stopped at the 50 month MA to make an impulsive down-move which ended the bull campaign. Even on monthly terms we are not oversold any more and are building a huge Head and Shoulder top. The high of that right shoulder is in and its now only a matter of time until we test the neckline at 6500 once again but it can and will take at least 1 year is my current assumption. So the little upswing currently is another chance to add to shorts or get rid of longs the 9700 support does have no significance as you can see yourself on this chart. In a short term chart it stopped down-moves 3 times this year so far but again only a matter of weeks to crack.
Thursday, May 27, 2010
DOW weekly update
The monthly chart on the DOW gives us the real picture where daily fluctuations do not distract. We defended in March 2009 the support line made a bit to steep recovery but stopped at the 50 month MA to make an impulsive down-move which ended the bull campaign. Even on monthly terms we are not oversold any more and are building a huge Head and Shoulder top. The high of that right shoulder is in and its now only a matter of time until we test the neckline at 6500 once again but it can and will take at least 1 year is my current assumption. So the little upswing currently is another chance to add to shorts or get rid of longs the 9700 support does have no significance as you can see yourself on this chart. In a short term chart it stopped down-moves 3 times this year so far but again only a matter of weeks to crack.
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