It is good to see that at last DOW has finally trigger the bearish pattern, I was expecting DOW to test little higher levels in early days of this week but it decided to act on that bearish pattern form the starting. On my 4th may, 2012 forecast I mentioned that if DOW drops below 12900, investors should cover their long positions and I think that was right call.
As I mentioned in past week that if bearish pattern triggers then it has the option to go up to 12100, here I must say that 12200 is acting as a good support for DOW. So it may give some flat movements in early days and then it has a chance to bounce back from that level. Here it may get initial resistance at 12600 and better one is at below 12800. Even if DOW starts upward movement from early days of the coming week then also those will be the resistance level. But if DOW chooses to drop below 12100 then next important support level is 11800. For coming week emphasis should be given on 12200 level.
Last day I was talking about a bullish pattern which I think that DOW is forming. Though it will be good if I talk less about that because that is in initial stage and also there is a chance that DOW will start making lower highs and lower lows from here, so it needs time to say any specific trend about future.
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