Rebounding off resistance

Through technical analysis, we saw how the Dow Jones rebounded off the trendline that was drawn on the chart a few posts ago and it closed down sharply on the latest closing. If the Dow Jones fall, it should land around the area of 13000 due to a confluence of technical indicators.

1. It is near the fibbonacci retracement of 50% and 61.8%
2. 200d MA is quite near the level
3. The previous low for this current trend and the previous high from the uptrend that ended in Feb 07 is near the level of 13000.

We shall see how the Dow Jones approach the 50% fibbonacci retracement which is an important landmark on the charts.

Dow Jones Industrial Average Chart:


Nothing much to say about the Straits Times Index. Currently seem to be supported on the 200d MA and subsequent trends will be dependent on the Dow Jones. I posted a chart for reference and future keepsake.

Straits Times Index Chart:


Ausgroup has retraced back from the breakout of $1.74 and is now forming a hammer testing the upside gap on the support level of $1.59 which suggest that this level is quite a valid support. We shall see how this counter moves in subsequent days.

The main thing to watch now is where will the indices be finding support at.

Ausgroup Chart: