Sense & Guts - Technical Analysis: Dow Jones Index Found the Support?

What is Technical Analysis?

Technical Analysis is the forecasting of possible future price movements based on the past or historical records. Like other forecasting methods, it is using the past to determine the possible future, although the result may not be 100% accurate but it helps investors to anticipate what is the possible price movements ahead.

Technical Analysis is used by many investors and fund managers. It helps them to determine the trend of the market and individual stock, as well as the timing for entry and exit in their investment.

Friday, July 11, 2008

Dow Jones Index Found the Support?

After days of ups and downs, DJI has finally touches it support (Bottom trend line) at around 11000, which can be a strong support. With MACD crossing over the signal line, it posts a good chance for a short term rebounce. But the market is still in a downtrend in long term.

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In order to have a confirmation on short term reversal, DJI need to break it current resistance (top trend line) at around 11280~11290.

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