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Happy Trading.

DJIA Log Scale Chart Review 22 Jan 2010

0n my earlier posting on 31 Dec 2009 I mentioned that there are other faint dotted projection lines plotted on the chart that I will not comment on unless the Bears capture the bold red triple support lines which forms the first major Bulls defense embattlement against the Bear Raiders. Bears have capture this defense embattlement and those projection lines are now the next support zones as seen in the log scale chart.

11 Jan to 20 Jan 2010
On these days the DJIA venture above the bold green major down trend resistance which is being projected from the Oct 2007 peak.

21 Jan 2010
Blue trendline break down confirmed after the whole candlestick bar falls completely below the blue support line.

22 Jan 2010
Red triple line support zone taken out together with light green channel support. Immediate support is the orange channel. Next support is the dark grey channel and the dark green dotted line 100 days simple moving average line.If the key psychological round number 10000 support fails expect a drop to retest the 23.6% Fibonacci retracement support.

However, if a successful rebound happens the red triple support turned resistance zone and light green channel will act as a resistance buffers

DJIA Rising Wedge Broken

Giant red rising wedge broken and closes slightly above 50% Fibonacci Retracement.
Further weakness will plummet DJIA towards the green major down trend resistance turned support line. Support failure here will mean more downside towards 38.2% Fibonacci Retracement.

However, if DJIA rebounds immediate resistance is the lower rising wedge support turned resistance line. A breakout here will challenge the previous peak at 10729.90 and continue its upward movement within the wedge again.

Stay alert and be nimble as DJIA Dolphin Flipping is most likely going to continue in the near term.

ChinaEratat Dragonfly Testing Spring Board Channel

Dragonfly candlestick taking off from red channel launching pad perhaps? Judging from past experience as shown on the chart an extremely high probabilty that history will be repeated here. A successful take off will target the blue channel as the flight destination.

Yanlord Testing Major Support Trend Lines

13 Jan 2010
Price breaks below 200 days simple moving average. First signal that trend has change to bearish.

15 Jan 2010
Clear break from 2.12 support beam of dome structure. Second sign that bear has come to party.

Now waiting for the final confirmation that the bear is here to stay. A break of the blue bold major support lines will confirm that the bears have taken residence at Yanlord.

A test of the green dotted support line is imminent. Any weakness here will cause a slip down to the next red dotted support line. Any upward retracements will probably be resisted by former supports and turned resistances.

Stay alert and be nimble if you intend to trade counter trends instead of the easier trend following methodologies.

Rotary Spinning Top

Two indecisive candlesticks a gravestone doji and a spinning top are testing the pink resistance zone. MACD. RSI and stochastics all showing weakness. A break down from lower blue channel support will iniate fall towards green support zone. Light blue zone is a major support area.

Upward immediate resistance at 1.15 followed by red upper channel boundary. Next is the narrow green channel resistance and a break above 1.20 will challenge the blue upper channel resistance boundary.

Genting Shooting Star Variant

Shooting star variant spotted inside green channel. High chance of a retest of lower green boundary support as profit taking sets in. Price movement most probably will be fluctuating within the green channel.

Immediate support lower green channel boundary. Next support pink zone followed by major light blue support zone.

Immediate resistance upper green channel boundary. Next resistance 1.35 followed by 1.40 and upper blue channel boundary.