Thursday, February 24, 2011

A Breakdown Of The Crucial Mid Bollinger Band Will Drive Dow Jones Lower Towards 12000 Level, 24-02-2011

Despite a stronger Jan existing home sales of 5.36m units (consensus: 5.22m), the Dow continued its slide for a 2nd day, following the 1.4% plunge on Tuesday. Dow Jones drops 107 points as oil runs up to US$100/barrel. Sentiment was also hurt by the poor guidance offered by HP.

Oil continued to barrel higher on concerns over Libya and social network demands for a ‘day of rage’ in Saudi Arabia. Fears that political turmoil, which has already claimed the leaders of Egypt and Tunisia, will not be contained to North Africa and could spread to the bigger oil-producing nations, drove crude oil prices to levels not seen in two and a half years.

Oil rose to the highest price since Oct 08 as Libya’s violent uprising threatened to disrupt exports from Africa’s third-biggest supplier and spread to other crude-producing nations in the Middle East. Futures gained as much as 2.7% after heavy gunfire broke out in Tripoli again, army units defected and a former aide to Muammar Qaddafi warned the spreading revolt.

Wheat plunged for a third day in its biggest collapse since 2008 and corn and rice dropped as traders speculated that riots in North Africa and the Middle East will curb demand from regions buying 32% of global shipments. The grains extended the decline as violence escalated in Libya. Leaders were already toppled this year in Tunisia and in Egypt, the world’s biggest wheat importer.


A Breakdown Of The Crucial Mid Bollinger Band Will Drive Dow Jones Lower Towards 12000 Level
DowJones24-02-2011


Source: StockCharts.com

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