DOW

OK this is what I am seeing on DOW

clip2net.com/s/2BnpW

Plenty of support around the 13000 with fibs, resistance and support turn to resistance.
If looked at on the hourly even more support

RMc

Ive gone long on this from the first touch of the trend line with a 40 point stop.
This could be a risky trade thou due to the previous candle. Im currently in profit but only just.This was a first touch basis trade.
If this does finish below the trend line then a bigger correction will follow. This may then test the 13000 level.




DYOR
remo

If this does finish below the trend line then look to enter long at 13000 as thats where the 38.2 fib level is.Its bang on that level.
Obviously im long currently but just pointing out a key level to you guys


dl.dropbox.com/u/4899609/dow13dec.png
DYOR

If the dow can finish above 13190 then id expect the dow to go towards the recent high again(13329).
It looks like the 23.6fib level held which is kinda bullish to me as that signals a strong trend is still in play.
So as long as we finish above 13190 today then id stay bullish. If it finishes below this level then look to 13000 for possible bounce next


DYOR

Hi Remo,

From a technical perspective why is so significant to finish about yesterdays high even if the DOW closes up and above the 23.6fib? Sorry If my question is abit naive. Just trying to understand the important of closing above previous day highs.

Thanks
Amo

hi Amo
Its just the way i do things on the dow.
It stems from my Elliott counts i do on the dow and the way i use the previous day high as a means to the next wave as such.
its just some thing ive noticed over a long term and its in no books as such so its really just my thing.
So it probably wont help you much in understanding what im saying.