Monday, August 22, 2011

Weekly Dow Jones Is Likely To Find Strong Supports Near 10000-10383 Amid Oversold Indicators, 22-08-2011

Wall Street Recap: Dow Jones skids 1.6% last Friday to end -4% wow
Dow Jones stretched losses into a fourth week, as apprehensive investors remained on alert for any sign of trouble or resolution from the European Union and its banks.

After climbing as much as 120 points during Friday’s session, the Dow tumbled 173 points to 10,818. Investors already reeling from big losses in growth stocks were thumped by a dismal outlook from Hewlett-Packard, which nosedived nearly 20%, its worst day since the stock-market crash of 1987.

Wall Street outlook:Dow Jones: Likely to build a base around 10000-10300 levels.
As cautioned earlier, the Dow Jones closing at 10818 (below our envisaged 61.8% FR or 10860 support) last Friday has heightened more downside risks to retest recent low of 10604 and the next 76.4% FR support at 10383, before heading towards the 10000 psychological mark.

We believe the Dow is likely to defend the 10000 points and begin its base building activities amid extremely oversold positions as weekly RSI will then be approaching 3-year low of around 13 (recorded in Oct 08) from 31 now.

Weekly Dow Jones Is Likely To Find Strong Supports Near 10000-10383 Amid Oversold Indicators
DowJones22-08-2011



Source: StockCharts.com

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