Monday, June 13, 2011

Wall Street Outlook: DJIA: Relief Rally May Head Towards Mid Bollinger Band, 13-06-2011

Wall Street Recap: Dow ends +75 points to record 1st gain in 7 sessions
The Dow up 75 points after a narrowing of the US trade gap that offered hope of a better 2Q11 GDP estimates. Meanwhile, the government also reported a slight rise in those applying for unemployment benefits, with new claims up 1,000 to 427,000 last week.

Sentiment was also boosted by the Greek Cabinet's decision to support a new round of austerity measure for its debt-ridden nation.

Wall Street outlook: DJIA: Relief rally may head towards mid Bollinger band
As anticipated, the Dow finally had a technical rebound after plunging 520 points over the last six sessions and 6.8% from its 52-week high amid a slew of sluggish economic reports.

Nevertheless, the mood remained fragile as the early intraday 134 points gain was fizzled off towards the end to end +75 points. Technically, the Dow may continue its long overdue rebound for a while as technical readings are showing signs of uptick from its extremely oversold indicators.

Immediate resistance levels are Immediate relief rallies zones are 12378 (mid Bollinger band) and 12451 (50-d SMA). Immediate supports fall on 12k psychological level and 150-d SMA of 11982 points.

More solid support is the 200-d SMA of 11677 points.

Daily Dow Jones: A Relief Rally May Continue Towards Mid Bollinger Band


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