April 8, 2009
Dow Jones Reaches Pinnacle Point of Resistance
By Planet Wealth
With America’s economy seeming to have some level of influence in the world economy, I thought it would be excellent to see what the Dow Jones (DJI) chart looks like.
Last week the XAO closed on an area of a pinnacle point (see last post). Should it break up we are likely to see alot more upside, should it rebound off the resistance the bear market still has a strong hold. Will the DJI help us see some possible foresight of what the XAO may do?
On the weekly Chart, the DJI is showing us, it too is at a pinnacle point. After channelling down for 6 months, it has spent the last 4 weeks rallying to an intersection of a strong weekly resistance line and the top of the 6 month channel. If the rally still has enough power to break through, the next point of resistance is at 9000. If the rally is losing strength we could expect to see a rebound off resistance and the channel validated once more. Either way, it is likely to have an influence over what the XAO does at it’s own pinnacle point.
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Topics: Stock Charts, dow jones, trading patterns, trading tips | No Comments »
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