DOW STAGE V SHAPE RECOVERY -9-11-14

DOW JONES INDUSTRIAL AVG INDEX CLOSED AT 17573.90 ON 7-11-14

SUPPORT:- 17390 / 17350 / 17278 & 16937

 RESISTANCE :- 17660 / 18280 & 18515

(Figures in bold are important)

Dow Jones made a top on 19.9.14 at 17350.64 and then went down sharply  to make a low of 15855.12 on 15.10.14 threatening the long term up -trend but thereafter it made a sharp V shape recovery and went on to make new all time high of 17575.30 on 7-11-14 in 18 trading session. It was a huge move and surprising too as nobody could have expected it. Technically it is looking o.k now but due caution is advised as this rise was vertical one therefore it corrects from here then the fall could be vertical too.  

At present it is moving in a channel and the range for it is 18030—17560(this reading will move up every day) for 10-11-14 ,since it is near the lower range of the channel one should be alert in long trade  because breakout on the either  side will decide that whether up move will continue or correction will set in. The strong support for it exist at 17350 but it will give the first sign of weakness if it breaks the lower range of the channel and if it starts trading below 17100 would be the potential sign of weakness. 

..REMARKS:-Long term up trend is back on track with V shape recovery but extreme caution is advised in long trade as it had a vertical rise and if it corrects now then the fall could be vertical too.

Please use support and resistance level as entry, exit and target points and also as trailing stop loss in favorable trade. Volatility could be there so trade cautiously and DO NOT TRADE WITHOUT STOP LOSS.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

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