Tuesday, July 26, 2011

Daily Dow Jones Has More Consolidations, 26-07-2011

Wall Street recap: Dow Jones drops 88 points, recovering from -145 points intraday
Amid worries of increasing threat of a ratings downgrade and possible default following the reveal of fresh competing plans to raise the debt ceiling and Moody’s downgrade of Greece’s credit rating, Dow declined as much as 145 points to 12536 in the early session.

However, the losses were reduced to 88 points at 12593 as investors remain hopeful that there will be an agreement on debt ceiling before the August 2 dateline.

Dow Jones Outlook
On Wall Street, if a debt limit deal can be ironed out before 2 August, the Dow Jones is expected to consolidate near 12340 points, before retesting the downtrend line resistance near 12720 points and 12843 (upper Bollinger band). On the other hand, failure to reach a deal by 2 August will trigger a downward correction towards uptrend line support near 12000 and 3-month low of 11822 (16 June) levels.

Daily Dow Jones Has More Consolidations

Source: StockCharts.com

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