10 Oct DOW Follow Up Analysis 10th October 2012
I don’t intend to make a habit of posting about Day trades, but following yesterday’s DOW analysis and today’s follow-through of the sell off, here’s a quick update.
For the 4 hourly and 1 hourly charts, the levels detailed in yesterday’s post still stand, so for today here’s a screen shot of the Daily chart.
DOW Daily, pierced it’s trend line and is about to retest the old breakout which should (in theory) now be support.
A recent theme of these break-out retests has been less of a pin point accuracy retest, but a deeper interaction with the old congestion zone. This suggests that even if support is offered in the 13,260 to 13,280 region on a Daily candle closing basis, price is likely to at the very least pierce the support to leave a wick below it:
For now I’ve covered Day-Trade short positions and await to see how price interacts with this possible support level tomorrow. If price slices through it and continues it’s sell off, then the green Daily 200 MA could become a reasonable target.
As a side note, you may recall the CAD:JPY analysis discussed last Week. I wanted to enter that swing short today but felt that I had too many open positions running and didn’t want another one to have to manage. However, I’m still tempted and still believe it’s well worth keeping an eye on for a swing short.