biggd's sneak peak commercial weekend zoomba, page-75

Where's Mongo?

In America:

Dow Industrials +2.19%
Dow Transports +2.83%
SP500 +1.95%
Russell 2000 +2.64%
Nasdaq100 +1.89%

Comment: A strong day on lower volume. I mentioned yesterday that we could expect low volume on this day as it was Veterans Day. That’s a federal holiday in the U.S. Schools and banks are closed. A lot of people (including traders) take the day off out of respect for the war dead or simply to spend some time with family. So we can’t take too much notice of the low volume today. Normally, that sort of volume would put today’s advance under suspicion, but we have to take it on face value.

NewHighs/NewLows 53/16. NH>NL. New Lows have returned to a benign level. New Highs are mildly bullish.
Technical Comment on the Dow Industrials:
The DJIA finished at 12153.7. Above 11900 support and above the 200Day Moving Average. Close to the 12220 resistance area
Below the 10-Day MA. Negative.
Indicators:
* Stochastic: 53.2. Below its signal line and falling. Negative.
* RSI.9 is at 59.2. Above its mid-line. Positive.
* MACD Histogram marginally below Zero. Neutral.
* MACD above zero. Positive. Falling perilously close to the zero line. Neutral
* CCI.14: +64. Positive.

For the past three weeks the Dow Industrials has been in a sideways (coiling) consolidation, oscillating around the important 200-Day Moving Average.

These coiling symmetrical triangles are reasonably reliable patterns which tend to break in the direction of the prevailing trend – which is up. The volume typically falls as the triangle develops. That’s what has been occurring.

Wait for the breakout – and then break above horizontal resistance.

Support and Resistance: 11600-12300.

Redbacka