During this week DOW showed couple of good moves among its peers. Finally it looks like that DOW has broken 12600 level though it may face little resistance around 12800. During last weeks I was talking about a short-term bullish pattern and if that pattern is true then it has a chance to test level above 13000 in the upside.
In past I was talking about two future options for DOW. Since now it looks like that it broke 12600 level (though it will be better to watch couple of days more) so now I will be giving more emphasis on short-term bullish pattern than that lower highs & lower lows trend. But if DOW got the resistance of 12800 then situation can change, as once again we will be talking about lower levels. If DOW drops from this level then its initial support level will be around 12400. But as DOW is following higher highs and higher lows trend (in long-term chart) from year 2009 so if it still maintains that trend then I don’t think that DOW will test 2011 low levels. Around 11860 is the 50% Fibonacci retracement level for DOW but if it goes more then 11506 is the 61.8% Fibonacci retracement level. I think for now the worse case scenario is 11200.
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