DJIA found resistance in the 16.600/16.650 area as it seems that it was quite “overbought” in the short term. Moreover, the 200-day MA is @ 16.585, so pressure there did not really come out unexpectedly. It is positive that the index is still above its August low, while it has moved more than 500 points away from last week’s yearly low. Although the technical picture is quite good now, DJIA needs to stay higher than 16.400 in order to keep the positive momentum alive. There is no technical indication of a reversal down yet. Resistance could be found in the 16.500/16.700 area.
Dow Jones Industrial, daily chart:
Chart courtesy of Investing.com. http://investing.com
Please read the Disclaimer!
RECEIVE MY TRADING REPORT FREE OF CHARGE FOR 2 WEEKS BY SENDING ME AN E-MAIL AT: THETRADINGSTRATEGIST@YAHOO.COM !!!