Technical Analysis of Financial Markets

Tuesday, December 04, 2007

Dow Jones 28/11/2007 to 04/12/2007: Head & Shoulders


Over the last 5 trading sessions, the Dow has seemingly charted a bearish Head & Shoulders formation. A break below the Neckline support at the 50% Fibonacci retracement level confirms the formation with a price target towards 13,000. With declining oversold stochastics signalling a bullish crossover, price action above the 200-day moving average may invalidate the formation.

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