Stock Incubator

[dalcindo]

Re: $INDU - WEEKLY Chart: BEARISH

However strong the rally may have been, I thought it noteworthy to point out two significant technical points in the WEEKLY $INDU chart:

First, if there was any one ultimate point that a rally could have reached since $INDU's MAR 2009 low, recent price highs may then have been it. Taking a look at an extension of Fibonacci's grid to its significant 161.8% correlates well with recent highs around the 10330's, where price seems to have taken residence.

Second, at the very level where that same rally occurred, the RSI has indicated some statistical market fatigue where buyers are thinning out as it repeatedly failed to reached the significant 70-level. Correspondingly, MACD's histogram is returning to its zero-level while its signal line is pointing towards a likely bearish trigger.

OVERALL - Had the chart been a daily timeframe, all would be (still) well, but the momental significance of these prices point towards a strengthening of a bearish force that is likely to turn things back to whence they came.

Sentiment = BEARISH

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$INDU - 36-Mo., Weekly Chart:


- Dalcindo