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Dow Jones technical analysis

Discussion in 'International Markets' started by dj_420, Nov 13, 2007.

  1. dj_420

    dj_420 Well-Known Member

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    I couldn't find a DOW analysis thread so I thought I would start one. At least then there is XAO and DOW analysis threads.

    Anyway interesting that on the DOW charts the previous correction was still trending inside the same trading channel and found support right at the bottom of the channel.

    Recently the drop has broken through the support on the trading channel. The last level support tested and held at 12,800 ish in the last correction. If the DOW continues to slump will we see this level be tested and hold again?

    Also interesting that before the previous correction we had a blow off top and a break of the trading channel right before the market corrected.
     

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  2. CanOz

    CanOz Every day above ground is a stellar day!

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    Re: DOW Analysis

    Well done DJ, i'm impressed. You've really taken on a TA approach now, good to see. Maybe i've been away for a while?:eek:

    Cheers,
     
  3. dj_420

    dj_420 Well-Known Member

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    Re: DOW Analysis

    Lol, cheers mate

    Yeah I have been getting into indices and futures trading, opened up account with CMC Markets, I had done a little bit of stuff before on tech analysis but with uni finished it is time to learn a lot more.

    DOW actually now looks to be finding support tonight, could be a signal for longs to re-enter.
     
  4. bean

    bean Well-Known Member

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  5. CanOz

    CanOz Every day above ground is a stellar day!

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    Re: DOW Analysis

    Yeah, sure does, i've got one eye on the gold mini, and the other on the US indices....i still think there might be some sellers left in the US yet.

    Cheers,
     
  6. dj_420

    dj_420 Well-Known Member

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    Re: DOW Analysis

    I agree there could be selling left. It does seem that the intraday trends have been reducing in volatility as off today. Could we be reaching a bottom? There has been what seems to be a fairly controlled and constant sell off in the last few weeks, it may be slowing down.

    Cheers for that link Bean
     
  7. nizar

    nizar Well-Known Member

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    Re: DOW Analysis

    The bottom is in?
     
  8. dj_420

    dj_420 Well-Known Member

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    Re: DOW Analysis

    Seems like it, I went long on XJO before bed last night and now its up 80 odd points from entry. I think I may just hold onto this long for a few days, we could see a nice recovery.
     
  9. kennas

    kennas hoarding tinned food

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    Re: DOW Analysis

    Looks likely, or at least close. Maybe confirmed going back through 13400...
     

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  10. nizar

    nizar Well-Known Member

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    Re: DOW Analysis

    Your a champion who knows how to clean up.
    Keep up the good work ;)
     
  11. Kauri

    Kauri E/W Learner

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    Re: DOW Analysis

    Don't usually bother much with the indicies as I find it too difficult to apply my trading method to them but.... :D the S+P, apart from lurking around the psycho. level of 1400, looks fib-wise to be potentially interesting... :cool:
    Maybe Santa Claus is coming to town??
    Cheers
    .........Kauri
     

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  12. kennas

    kennas hoarding tinned food

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    Re: DOW Analysis

    Another psychological factor for a bounce could be the 10% falls pretty much across all the indicies. While the more bearish will be saying more to come, those not covered in so much fur may consider the 'correction' an opportunity to get back in.
     
  13. The Mint Man

    The Mint Man Well-Known Member

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    Re: DOW Analysis

    I agree Kennas,
    I posted the following in the MQG thread yesterday, it might be useful for this thread too;
    click here to read more http://biz.yahoo.com/ap/071126/wall_street.html?.v=45

    IMO, I find this part to be quite telling - 'The Fed said it would inject $8 billion into the banking system on Wednesday.'
    Could this mean that the US markets will gain some confidence, possibly gear up for the Santa rally? This would be 2 days of good news in a row for the US.

    Also todays market report looks very good;
    here for the whole thing - http://biz.yahoo.com/ap/071127/wall_street.html

    Cheers:D
     
  14. Kauri

    Kauri E/W Learner

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    Re: DOW Analysis

    Santa's Claws spotted on the horizon... although not sure if Rupert is up to the long haul...
    Cheers
    .........Kauri
     

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  15. Kauri

    Kauri E/W Learner

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    Re: DOW Analysis

    What will this do for the markets tonight.. alongside BB's comments.. :)
    Cheers
    ..........kauri

     
  16. Kauri

    Kauri E/W Learner

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    Re: DOW Analysis

    S+P is interesting... how many times can you surge on the same percieved rate cut.. :D
    Cheers
    .........Kauri
     

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  17. Kauri

    Kauri E/W Learner

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    Re: DOW Analysis

    Is this the turning point.???
    Cheep cheep
    ................Kauri
     

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  18. nikki

    nikki Well-Known Member

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    trend broken

    Can someone help me understand this comment and idea from both technical and psychological viewpoint:

    The Gartman Letter produces this chart today”¦pointing out that the Dow is now below the 200 day moving average and the 50 day average is “swiftly converging upon the latter from above”. They say “no matter how one casts the trendline going back to the lows of the summer of ’06, it has been broken”.

    There is an attachment that shows the trend line, etc. I follow the DOW Theory closely and have noticed that the utilities index has hit a significant all time high. This comment from the Gartman Letter confuses me??
     
  19. ithatheekret

    ithatheekret Well-Known Member

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    Re: DOW Analysis

    I won't comment on theories , but ......... even after the stellar run we have seen over the last 2 nights , the Dow has not broken any technical levels of resistance . So in my books , it's a cliffhanger . So too the S&P 500 which is even more precipitous , but , the S&P did rocket though its 200 day MA ever so quickly , like in a couple of hours ....... so I labelled it an .. oh yeah ..

    Windows must have needed cleaning , or a frock .
     
  20. ithatheekret

    ithatheekret Well-Known Member

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    Re: DOW Analysis

    I've never used the Ichi indicator on indexes before , based most of it's application to forex , but I set one up and noted that the DJIA is below a cloud and if it was a forex chart I'd be short . But given that it is a dominated market indice I'll pause on that one due to the risk ..........

    Might have to get into the loft and dig out my old Guppy bibles .
     
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