Monday, April 19, 2010

Head & Shoulders Top In The Dow

The hourly chart of the DJ30 is sporting a nice head and shoulders top that targets 10757 to 10677. It is a good bet that a retest of the January high is likely, but that should provide a good entry point for new longs, at least short term. I would be surprised if the January high is broken on the first test. Money managers are in the black for the year and will defend that level vigorously. A break of the lower channel line from the February low will also bring in a lot of new shorts, which should add another layer of support.

No comments: