DOW: See how it is stopped by the kumo and Chikou Span

All major indices rally yesterday.

Just last week, I posted a Weekly Chart reading on DOW.

In the post, Ichimoku identified 8011 as possible resistant levels.

Here, I am going to show how it shows up on the Daily Chart.

2009apr-dow-jones-industrial_daily-800x600

Firstly, noticed how the Weekly Chart resistant translate to the kumo resistant on the  Daily Chart?

On the daily, candle has pierce through 7942 resistant.

At this moment, the kumo still has not twist to show that a convincing upward trend has started.

However, we do have a signal from Tenkan sen crossing Kijun sen.

We may see DOW retracing a bit after such a great run. And it may trade inside the kumo; a trendless state.

The blue arrows are there to highlight the resistant from Chikou Span on the Daily chart. And yesterday’s close has pierce through it a bit. 

The great thing we can see here is DOW has recaptured the lost ground in the Feb selloff.

8011 continue to be a level that I will be monitoring closely.

I have also close off my short positions and started placing small probes on some long counters.

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iam802

Trend trading with Ichimoku