On September 26th, I wrote about the Dow Jones "Carefully observe the area resistance of the 61.8% Fibonacci extension located at 11.245 points, the previous peak in April, the index is back up against the nose directly on the Fibonacci ratio. The fracture resistance of upward of 11.245 points that will add a positive bias and increase the probability to reach the next target of 12.244 points .
The state of the situation a month later, the Dow Jones has come once again running against the resistance zone of 61.8% Fibonacci located at 11.245 points. The index is currently situated on a very important pivot point that will determine to some extent the upward continuity of the index or trigger a contraction / consolidation of the curve points of Mr. Jones. The index is still located inside the narrow channel of upward fluctuations, which took root at the end of August, last ten weeks, the Dow fluctuates within this narrow corridor bullish, then every week after closing down the support base of this corridor is potentially the beginning of a contraction / consolidation of the index.
area Fibonacci 61.8% to 11.245 points also represents the upper / resistance of a side corridor of fluctuation within which the index oscillate in the last ten months, the support base side of this corridor is in this area of 9.835 points. So if the index fails to break down significantly the area of resistance 11.245 points, it will return to consolidate within the side channel, and there is a strong probability that the Dow is heading towards long-term moving average of 40 weeks which is currently 10.468 points, just to retest the area highly symbolic.
With the creation of a corridor side of fluctuation between 11.247 and 9.835 points, the index to a margin for maneuver to consolidate all engaged in no way excessive negative pressure on WALKING. That is to say that as long as the index will remain within this channel fluctuation side, the margin for maneuver is known, so it becomes manageable and rational. It does not mean a free fall without basic support, but rather swing with attitude more than 1.412 points, which leaves some room for maneuver in a consolidation of the index. I become very bearish only if the support base of 9.835 points is smashed at the bottom.
For the above analysis on the Dow Jones HERE
Claude Bordeleau
The observer technical analysis of stock markets
With the creation of a corridor side of fluctuation between 11.247 and 9.835 points, the index to a margin for maneuver to consolidate all engaged in no way excessive negative pressure on WALKING. That is to say that as long as the index will remain within this channel fluctuation side, the margin for maneuver is known, so it becomes manageable and rational. It does not mean a free fall without basic support, but rather swing with attitude more than 1.412 points, which leaves some room for maneuver in a consolidation of the index. I become very bearish only if the support base of 9.835 points is smashed at the bottom.
For the above analysis on the Dow Jones HERE
Claude Bordeleau
The observer technical analysis of stock markets
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