Wednesday, January 12, 2011

DJIA Uptrend Intact As Index Still Holds Above The Mid Bollinger Band, 13-01-2011

On Wall Street, the DJIA ended 84 points higher at 11755, a new 2-year high after a successful bond auction in Portugal and possible further strengthening of the Euro region’s bailout fund eased worries.

Financial firms also led stocks higher Wednesday on hopes that banks would start raising their dividends this year.

Sentiment was also boosted by the Fed Beige book that shows holiday-season spending and increased manufacturing activities drove an economic expansion across the U.S in November and December 2010, with businesses cautiously optimistic about their 2011

On the back of improving economic newsflow in US and Europe as well as anticipation of better 4Q2010 results, the Dow is likely to begin to head towards the 12000 points again and postpone the long overdue pullback after the reporting season.

Immediate supports are 11667 (10-day SMA), 11599 (mid Bollinger band) and 11430 (lower Bollinger band) whilst resistance level is 11916 (weekly higher Bollinger band).

DJIA uptrend intact as index still holds above the mid bollinger band
Source: StocksChart.

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