Monday, November 21, 2011

Dow Jones Is Trying To Build A Base Near 11112 – 11344 Levels

Wall Street recap: Dow Jones tumbles 249 points amid Europe and U.S. debts woes
The Dow Jones nosedived as much as 342 points intraday to 11454 before recovering to end -249 points at 11547.

The sluggish performance was triggered after a Democratic aide said the super-committee is on the brink of failure. The Dow Jones is off 3.2% so far in Nov after a 9.5% gain in Oct and rallied as much as 18% to 12284 on 27 October from 3M low of 10404 points.

DJIA outlook: Trying to form a base near 11112-11344 levels
After briefly surpassing the 200-d SMA (now at 11970) to as high as 12284 (27 Oct), the Dow corrected 6% to end at 11547 points yesterday, but still 11% higher from recent low of 10404.

Following the breakdown of major supports of mid Bollinger band (11937 – which is also the 20-d SMA) and 100-d SMA (11660), the Dow may retest lower supports at 11344 (50% FR) and 11122 (61.8%) to form a temporary bottom. Further supports are the 11000 psychological level and 10847.

Immediate resistance levels are 11970-12284 levels.

Daily DJIA: Trying To Build A Base Near 11112 – 11344 Levels
DowJones22-11-2011



Source: StockCharts.com

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