DJIA 13 NOV 2013

DOW JONES INDUSTRIAL AVERAGE                                                               SHAHRIZUL NAZLI

Index Analysis

Trend: Cautiously bullish

Daily chart illustrate that Index is traded within the rising channel line between Nov 2012 to Aug 2012 and has been in a range since then. Index is still traded above the uptrend line. Rectangle formation can be drawn and latest closing data shows that upper line of rectangle has been penetrated. However,
Index have not touch the upper band of Bolinger indicates that Index may climb higher before it make a correction. It supported by MACD lines are hooking up and its histogram turn green. Bearish divergence can be seen between RSI and Index where by index is moving higher while RSI failed to make new high. If Index fail to maintain above the upper line of rectangle, a correction is to be expected.

Trading advice

Swing traders are suggested to liquidate their long position  as Index will be entering a correction phase provided that index fail to stay above upper rectangle line. Therefore, swing traders may initiate new short position and the target will be at lower line of the rectangle.

Price Projection

Medium term (short)     - downside target 14774 (Lower line of rectangle)

                     (long)      - upside target 16500 (Psychological resistance level)

Short term   (short)         - downside target 15250 (Fibo 50%)

                   (long)          - upside target 16000 (Psychological resistance level)