After Indian Trading time we saw DOW falling sharply-A news of a Security fraud driven fall…
Technically what it says?
We have to draw a new chart now.
Draw fib retracement from A to B. We can see that the fall of the evening could only take it to the 50% level, where, incidentally the first one yesterday was at 61.8% level. Take this as positive…
Now draw trend lines. The current fall took be below the bottom trend line BT; but after an hour of trading, its action is within the pattern, indicating that it can be a busted pattern.
These two points indicates that there can be a sharp recovery by the close.
If DOW takes above TT, then we will see DOW rallying with vengeance...
An important Job data is to be announced later today in US, which will be main driving force. Let us see how the whole thing is going to turn around.
So… let us keep our fingers crossed…
