Sense & Guts - Technical Analysis: Dow Jones Index Breaking Short Term Top Trend Line

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.

Wednesday, August 6, 2008

Dow Jones Index Breaking Short Term Top Trend Line

Dow Jones Index has continued with its short term uptrend and closed at 11615.

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It has found its support again at its short term bottom trend line and continue to move up breaking the short term top trend line at around 11555. Next resistance will be at 11695 follow by 11820. Breaking 11820 will see a confirmation on reversal base on chart pattern.

With MACD crossing the centerline, it is an indication of change of trend....a short term up trend. Since it has just crossed over, it is better to fall back to chart pattern for confirmation. But generally, chart looks good for short term.

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