Wednesday, July 21, 2010

Congestion..

As for the last 8 days, a congestion region is being formed, it is not wise to say anything now, unless a breakout or breakdown forms.

 

One point is to be noted is that, the falling three pattern, formed yesterday was neither confirmed nor became invalid. We need to wait for tomorrow.

 

DOW Futures looks to be forming a Double top in the hourly chart; that too precisely at the 62% retracement level. This calls for a caution.

 

I know it is premature to forecast anything at the moment. But the chances of it becoming a Double top are high.

If DOW future breaches 10195 convincingly, we might see large drop today

Disclaimer: The views expressed herein are to be used with your own discretion and neither analyst nor the publisher will be responsible for the outcome.

MASTERSTROKES