DJIA Index – High at 13,388.66. Temporary low at 12,035.09Technical Ratings
Support: 12,035 – 12,500 Resistance: 12,554 –12,931
RSI: 49.70-level. Signal line inched up.
Stochastic: 18.22-level. An oversold Stochastic buy signal.
MACD: +48.0-level. Heed the MACD sell signal.
MA: Price bars are between the 18 & 40 WMA. Exercise
great caution though
Strategy: The DJIA Index rebounded 435.63 points last week on a WoW basis to close at 12,554.20. The index surprisingly gained ground as Euro finance ministers agreed to lend beleaguered Spanish banks via a EUR100b line of credit. The DJIA’s tone is neutral on the daily, weekly and monthly time frames. The DJIA stalled at 12,876.00 (high) followed by a key low of 10,404.49. Due to last week’s large positive close, the DJIA Index may trade between the support and resistance areas for this week.
The DJIA surpassed its 13,055.75 resistance recently to stall at 13,388.66 six weeks ago with a Dark Cloud Cover weekly candle pattern. The subsequent plunge ended with last week’s rebound from the 12,035.09 low. With some mixed weekly signals, we believe that the DJIA will remain range bound for this week.
by Maybank IB