Dow Intraday Charts 27 Dec - 31 Dec

[justyn]

A funny day due to the lack of volume, I'm sure most people had packed up for the day by 15:30.

The overbought peak at 850 and then double top suggested a short but with the news due out at 15:00 I thought it was best not to enter any trades at this time.

When the news did come out there was a little movement but then nothing all day until the very end. I suppose the best result was if you took the short at the open, put your stop in place and came back at closing time. Looks like some bad news came out just before the end of play.

Looking at the bigger picture, it could be a triangle breakout and we're headed South but I'd be inclined to say up tomorrow as we're in a horizontal consolidation channel with 800 as support and we've just bounced off that and looking oversold on the 1 min and 10 min charts.

If tomorrow is as quiet as today I would recommend turning the computer off, cracking open the bubbly early and celebrating the new year instead!

Justyn.

 

[tradesmart]

Good summary Justyn…

I got so bored with the Dow price action that my attention turned to stocks, and found some good movement in GOOG and took a multi-dollar run from $193.50 - $198…

(any port in a storm……. )

I reckon that the triangle is still intact and today’s trading just reflected price movement within that geometry, including the tank at the end…...

I guess that we can only watch for the breakout, and will the New Years eve bulls come out……?…….I suspect so, but won’t take anything for granted…..

edit - New Year's Eve........

Well, something for the bulls and the bears if you had the patience to wait until the evening action.........tinged with red at the end of the session ,but 780 ish support holding (just..)
Futs tanking to 760's after the close.......a sign of things to come......?!

Happy New Year Y'all......... :cheesy:

 

[justyn]

Happy new year everyone!

Decided not to trade today due to the low volume and lack of movement the last few days.

Look at the extremes you see on a low volume day ... RSI as high as 92 on a quick 20 point jump up and as low as 6 on that 40/50 point drop.

A small bounce up at the open after being oversold last night.

If you had the patience to watch paint dry all day then you could have gone short on the divergence / overbought bounce off 32 but for what reward? When the price has been stuck in a 20/30 point channel all day how do you know it won't move down only a few points?

On the bigger picture (10 min chart) it looks like the triangle broke yesterday and today was a pullback to the triangle support before heading South .... but I still wouldn't trust it due the low volume.

If it is a triangle break then it looks like the target is about 732 to me.

Anyway, I have some lagers cooling in the fridge and New Year is approaching ...

Justyn.