Last week I told that DOW is going to set the trend, it is getting a good resistance around 13300 level and its last day correction was big.
If it able to break 13000-13050 level then next important support is at 12930. Now if it drops below 12900 then there is a possibility that it may test level below 12700, though this is subject to new bad news. I have a feeling that down is making a pattern and if it follows that then it can drop up to 12650–12700 level in the bottom end. I must say that for this moment worst case scenario for DOW is 11600.
If DOW turns around at some point of time then it will get resistance at 13200. But in early days of the coming week if it drops more then initial resistance will be at 13050–13100 level. Though all these resistance levels depend upon its moves in early days of the coming week.
Investors may feel panic if DOW moves around 13000 –13150 level. I think person who has long position should cover it if DOW drops below 12900.
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