Monday, March 7, 2011

Dow Jones Is Likely To Trade Range Bound This Week, 07-03-2011

Last Friday in Wall Street, the Dow Jones eases 0.7% on profit taking and a 3% jump in oil. In the wake of strong growth in Jan factory orders and larger decline in Feb unemployment rates, the Dow briefly recorded a +13 points to 12271.

However, heavy profit taking profit taking activities saw the index plunging to 12079 (-179 points) before ending 88 points lower at 12170 (+0.3% wow). The roller coaster ride was due to the 1.6% rally on Thursday and a 3% spike in crude oil prices amid continuing unrest in Libya and news of protest planned in Saudi Arabia, the biggest oil producer in the world.

On the back of light economic data this week (jobless claims – 10 Mar and Feb retail sales/Mar consumer sentiment – 11 Mar), Wall St will take its cue from the oil market as unrest rumbles through the Middle East.

Immediate resistance zones are 12317 (last week’s high) and 12379 (upper Bollinger band) whilst the supports are situated at 12022 (lower Bollinger band) and 11944 (50-d SMA).

Dow Jones Is Likely To Trade Range Bound This Week


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