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Dow Jones forecast for coming week ended 19th October, 2012.

During last few weeks I was suspecting that if Dow does not able to cross 13600 level then there is a chance that it may react on its short-term bearish pattern, though it has not reacted fully but definitely it does it to some extent.

 Last few day’s lows say that it may be looking to make a base here but if it fails to do that then there is a chance that Dow may drop more from here. During last few weeks I was suspecting about a possible middle-term bearish pattern, now if Dow drops more from here and tests around 13000 level then it may be giving strength to that assumption but definitely it needs couple of more days to get an indication of that. In the downside Dow has initial support at 13200 level.

On the other hand if this base around 13300 works well or it reverses back from 13200 level then Dow may again try 13600 levels where around 13500 will be its initial resistance level. Dow has already triggered its bullish pattern and as I said in past that it may take time to react on this pattern because it is not a straight one. If Dow breaks 13600 then 13800 is its next strong resistance, Dow can go up to 14200 if it fully reacts on this medium term bullish pattern.


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