Wednesday, January 5, 2011

Daily DJIA: Crucial Support At Middle Bollinger Band To Sustain Further Rally, 05-01-2011

On Wall Street, ahead of the key job report this Friday, the Dow ended mixed on profit taking despite a good set of economic data, with a mild gain of 20 points to another fresh 2-year high at 11691, as profit- taking emerged following a 6.2% surge since end November 2010.

Investors shrugged off positive data from a robust 0.7% jump in November 2010 factory orders and a sharp rise in monthly sales from General Motors and Ford, as Fed signals that economic growth were not enough to cut back its $600 billion bond-buying program.

We reiterate our view that the Dow will continue to witness more volatility ahead of the key December 2010’s job report (January 7) and the forthcoming 4Q10 reporting season (in two weeks time). Immediate resistance level is 11870 (upper weekly Bollinger band) whilst support levels are 11512 (middle Bollinger band) and 11329 (50-d SMA).

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...