Friday, November 4, 2011

DJIA Outlook: Stiff Resistance At 12300-12500

Wall Street recap: Dow Jones surges 209 points to 12045, above its 200-d SMA
The Dow Jones jumped 209 points, near its intraday high as investors were encouraged by Greek Prime Minister's move to back down from a national referendum on the country's bailout package and lower weekly jobless claims, offsetting a slower October’s ISM service index.

Sentiment was also boosted by the ECB’s surprised 25bps cut in its benchmark interest rate to 1.25% to revive stalling growth as the euro zone could see "slow growth heading towards a mild recession" by end 2011.

DJIA Outlook: Stiff resistance at 12300-12500
Sentiment has turned slightly better following Dow Jones' resilience to defend above the neckline support near 11600 as a breakdown below this head & shoulder support will trigger more selldown towards lower Bollinger band of 11128 and 11k psychological level.

Nevertheless, given the increasingly overbought technical readings, the Dow Jones could face stiff resistance near 12500 and upper Bollinger band (12567).

Daily DJIA: Facing Stiff Resistance Near Upper Bollinger Band And 12500 Levels

Weekly DJIA: Heading Towards Its !st Fall After Rising 5th Straight Weeks Amid Hanging Man Formation

Source: HLIB Research

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