Friday, November 11, 2011

DJIA Outlook: Crucial Neckline Support Near 11600

Wall Street recap: Dow Jones recovers 113 points after 389-point selldown on 9 November
After plunging 389 points on 9 November, Dow Jones rebounded 113 points to 11894, following better-than-expected jobless claims while a retreat in Italian bond yields and the selection of a new Greek premier tempered concern about Europe’s debt crisis.

Italian government bonds rose after the ECB was said to purchase the securities and the nation sold the maximum amount of one-year bills on offer at an auction. Meanwhile, a statement from S&P affirming France’s rating and saying that a “technical error” was to blame for an earlier message suggesting a downgrade also lifted equities.

DJIA outlook: Crucial neckline support near 11.6k
Dow Jones’ technical outlook also deteriorated lately following the massive plunge of 389-point on 9 November.

Immediate resistance levels are 200-d SMA (now at 11975) and upper Bollinger band (12308).

For supports, it is crucial for the Dow to defend the neckline support near 11600. A breakdown below this level will trigger more selldown towards 50-d SMA (11439) and lower Bollinger band (11371).

Daily DJIA: Crucial Neckline Support To Prevent Further Selldown Towards 11000
DowJones11-11-2011



Source: StockCharts.com

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