A Bearish Technical Derailment Of The 13-mth Old Uptrend
♦ From Chart 1, the US Dow Jones Industrial Average (DJIA) began its uptrend since early Mar 2009, when it staged a technical rebound from a low of 6,469.95.
♦ The DJIA encountered a sizeable retracement in Jun – Jul 2009, but it was supported near 8,200.
♦ Its upward momentum revived swiftly, as it rallied through a tough resistance level of 9,200, and eventually pierced through the 10,000 psychological barrier and the solid 10,150 resistance level in Nov 2009.
♦ The index plunged in Jan 2010, when it failed its first attempt to remove the 10,850 level, but the fall ended at a low of 9,835.09, hence forming an Uptrend Line (UTL) for the index’s one-year old rally.
♦ With a significant reversal of the 21-day SMA nearby 10,150 in late Feb 2010, the index recharged and blasted off with another round of upsurge. This round, it managed to chalk up a fresh one-and-a-half year high of 11,258.01 in late Apr 2010.
Chart Surveillance - US DJIA - Correction Phase Underway! - 17/5/2010
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