Tuesday 15 May 2012

DOWJONES INDUSTRIAL AVERAGE: Short term study based on Elliott wave theory. Resistance @ 13050 and expect slow and steady fall up to 12285.



(Click on image to see separate clear view).
Dow Jones has much better chart than any other indices in the world. It hit a recent high of 13338 nearly 10 trading sessions back.
As of now it is giving us a sense that it has done with 5 wave cycle. It has broken then end point of 4th corrective down wave at 12710.

I have three important conclusions as of now.

  • If DOWJONES sustain below 12710 then we must expect levels of 12535 which is 38.20% levels. Very soon it will test 50% retrenchment line too which is at 12286.
  • We are bound to see some reactions on upside before breaching 12500 marks on decisive way.
  • On up side trading resistance will be at 12845. Decisive short term resistance will be at 13050. I am expecting test of 12286 without moving above 13050.

If I will have a choice to trade DOWN JONES then I would like to short it in any pullback and will prefer to press stop loss above 13050. Pullback will be a situation to form wave 'b', it should above near or above 12845.
I am not ruling out the possibility of 5-7% dip in Dow jones as of now.
I will update more about S&P 500 also very soon. 

Suggesting to read this also -
http://viecapital.blogspot.in/2012/01/dow-jones-technical-view-as-of-11-jan.html
On Jan 2012- Dow Jones was forecasted for 13200-13400 as target for rise. We have seen high at 13338

Read www.viecapital.com for stocks views
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Thanks & Regards,
Praveen Kumar
Mobile number – 09893369889
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