Monday, December 5, 2011

DJIA and Nasdaq 100


From DJIA chart, we can see that the market sentiment is bullish bias.

But DJIA has traded up to previous high. Last Friday high @ 12146, double top resistance 12180. We prefer to hunt for shorting opportunity at this level, reckon the “energy boost” couldn’t last longer than 2 weeks.

If market break above 12180 chances are DJIA going to 12300 and start consolidating by testing higher high towards 12700, hopefully can form a head a shoulder pattern (takes approximately 2 weeks) before it turns down again.

Traders prefer to short: Wait, hunt, observe
Traders prefer to Long: short term.


Bullish sentiment is leading the market, therefore Short term trading go for Long at target exit 2330.

Long term view similar to Dow, hunt patiently for short opportunity at 2330 pts.

If market break above this resistance abandon short view.

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