sitesearch
 

Dow threatens support

By Colin Twiggs
August 18, 2010 9:00 p.m. ET (11:00 p.m. AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.


The Dow Jones Industrial Average fell sharply on Thursday, accompanied by strong volume. Failure of support at 10700 would complete the dead cat bounce, offering a target of the 2010 low at 9600*.

Dow Jones Industrial Average

* Target calculation: 10800 - ( 12000 - 10800 ) = 9600

Gold renews drive to $2000/ounce

Spot gold broke through resistance at $1800, signaling an advance to test $2000/ounce in the medium-term. Retracement that respects the new support level would strengthen the signal.

Dow Jones Industrial Average

* Target calculation: 1800 + ( 1800 - 1600 ) = 2000

Shrinking debt sounds a warning

Shrinking debt levels warn of a dearth of private capital investment in the UK and Australia — and little job creation as a consequence. Falling household debt in the UK also indicates a weak housing market. But US levels appear to be bottoming.

Forex Updates

Click here for the latest forex updates.



Peace comes from within. Do not seek it without.

~ Buddha

How Good Is Your Market Analysis?
Compare our market views.





The weekly Trading Diary offers fundamental analysis of the
economy and technical analysis of major market indices,
gold, crude oil and forex.
The monthly What's New newsletter covers new articles
on Trading and the Economy, as well as new software updates.


 
Top of Page