CLOSED AT 16,026.75 ON 11.4.2014
Dow moved exactly the way I anticipated (see my article Dow looks heavy at top,posted on 6.4.2014).
The range of Dow for the week starting from 14.4.14 is- 16,456,12-16,015.32
It made a recent top at 16,631.63 on 4.4.2014 and thereafter went down by 600 points this week and closed at the lower end of the range ,so if it breaks the lower end of 16,015.32 then it could go down further and the possible point from where it could stage a pull back rally are 15,986 / 15,833 / 15,7036 / 15,663 / but If it goes below 15663 and stays for 3-4 days then it could go in for further deep down correction.The on going uptrend will remain o.k If it stays above 16,050.The support and resistance for index are given here under:
SUPPORT:-16,006.59 / 15,845 / 15,340 / 14,760 .
RESISTANCE:- 16,046.99 / 16,370 / 16,460 / 16,588.25 / 16,631.63.
REMARKS:- The trend is up but at present in down correction mode.Some technical parameters are showing sign of weakness so there is a distinct possibility that if it does not maintain staying above 16,050
then this on going down correction may turn into short term downtrend ,therefore the long position should be avoided till the correction is over.Please follow stop-losses religiously when you trade.
Dow moved exactly the way I anticipated (see my article Dow looks heavy at top,posted on 6.4.2014).
The range of Dow for the week starting from 14.4.14 is- 16,456,12-16,015.32
It made a recent top at 16,631.63 on 4.4.2014 and thereafter went down by 600 points this week and closed at the lower end of the range ,so if it breaks the lower end of 16,015.32 then it could go down further and the possible point from where it could stage a pull back rally are 15,986 / 15,833 / 15,7036 / 15,663 / but If it goes below 15663 and stays for 3-4 days then it could go in for further deep down correction.The on going uptrend will remain o.k If it stays above 16,050.The support and resistance for index are given here under:
SUPPORT:-16,006.59 / 15,845 / 15,340 / 14,760 .
RESISTANCE:- 16,046.99 / 16,370 / 16,460 / 16,588.25 / 16,631.63.
REMARKS:- The trend is up but at present in down correction mode.Some technical parameters are showing sign of weakness so there is a distinct possibility that if it does not maintain staying above 16,050
then this on going down correction may turn into short term downtrend ,therefore the long position should be avoided till the correction is over.Please follow stop-losses religiously when you trade.
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