Writing this before CET 12:00.
Thursday 30 minutes before close Dow started a strong rally lifting the index by 175 points. The rally must have been a profit taking by the players with short positions - they sold earlier in the week and now decided to buy back their short positions. This powerful uptrend spilled over to Asia which lifted the index to 10.813. This is also a trial to take back the lost resistance at 10.801 on close tonight. Asia lifted the index to the 2 hour close CET 04:00 at 828 which have been the top so far. The trend has then turned down to close at 10.744 at noon in Europe. - Now here comes my point. The 7 week sideways trend looks like a big Head and Shoulder formation with the neckline currently at 10.847. To get above a broken neckline again happens rarely. Other analysts may say that this is not a H&S but I think it is. If I am correct the Dow will fall to a target of 10.000 at present and SP500 and FTSE will follow. If I am wrong that will be shown today. Right now Dow seems to go down to test yesterdays low at 10.650. If that is beeing broken on downside the trend will take us down 800 points but this can take some time. It is also posible that Dow will hover around 10.650 - 10.847 for a while.
If something of interest happens today I will write a small blogg.
Happy week end.
Thursday 30 minutes before close Dow started a strong rally lifting the index by 175 points. The rally must have been a profit taking by the players with short positions - they sold earlier in the week and now decided to buy back their short positions. This powerful uptrend spilled over to Asia which lifted the index to 10.813. This is also a trial to take back the lost resistance at 10.801 on close tonight. Asia lifted the index to the 2 hour close CET 04:00 at 828 which have been the top so far. The trend has then turned down to close at 10.744 at noon in Europe. - Now here comes my point. The 7 week sideways trend looks like a big Head and Shoulder formation with the neckline currently at 10.847. To get above a broken neckline again happens rarely. Other analysts may say that this is not a H&S but I think it is. If I am correct the Dow will fall to a target of 10.000 at present and SP500 and FTSE will follow. If I am wrong that will be shown today. Right now Dow seems to go down to test yesterdays low at 10.650. If that is beeing broken on downside the trend will take us down 800 points but this can take some time. It is also posible that Dow will hover around 10.650 - 10.847 for a while.
If something of interest happens today I will write a small blogg.
Happy week end.
No comments:
Post a Comment