It was reported on CNBC that Darryl Guppy mentioned that DOW has a trading range of 6,000 to 10,000. To me, that is a very wide range for the short term traders. (Source : Huatopedia Forum)
Let’s just do a quick glance at DOW Weekly using Ichimoku and see what we can find out:
From the chart, we can safely observed the following:
- Index has hit resistance at 8043 and is now turning.
- The upper limit of 10,000 that Darryl Guppy mentioned can be found by looking at the kumo resistant level on top. On Ichimoku, it is around 10,287.
- The lower limit of 6,000 on Ichimoku as defined by the Chikou Span is the recent low of around 6,607.
- On a very short term basis, we will be obeserving if the reversal continues and whether it can stay above the 6,607.
- If it goes below this level on the Weekly Chart, we are going to see more ‘blood’ on Wall Street.
- The very sector that has lead this rally will probably be the same sector that can cause the support to break.
Thinking Out Loud: What if GM files for bankruptcy? Is GM part of DOW?
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