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Dow Breakout

By Colin Twiggs
October 5, 2006 11:55 a.m. AET (9:55 p.m. ET)

Occasionally we will issue an extra mid-week update when a significant event occurs on one of the major indexes. Your feedback is greatly appreciated.
These extracts from my daily trading diary are for educational purposes and should not be interpreted as investment advice. Full terms and conditions can be found at Terms of Use.


USA

After a narrow consolidation below 11750, the Dow Jones Industrial Average broke through resistance to form a new all-time high at 11850 -- a strong bull signal. A retracement that respects the new support level (11750) would confirm the breakout.





ASX Australia

The All Ordinaries retraced to test support at 5100 before reversing strongly at the opening, confirming the breakout. Expect a test of resistance at the May high of 5320 and a possible new high. Twiggs Money Flow (21-day) signals accumulation.





Gold

Gold has fallen out of bed, breaking out below a large symmetrical triangle, and is headed for a test of primary support at $540.





Source: Netdania




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