Posted by: Babu Suresh | March 26, 2009

Dow-Jones-Index-26-03-09

DJIA-Spot-4H-Daily-ChartsDJIA-SPOT-26-03-09

Let me first of all recall my 16th Mar. Analysis: My resistances were 7414 and 7473 while my supports were 7204, 7161. My 1st support was tested on the same day to close at 7216 and the following day my second support was tested and zoomed from there non-stop breaking all my resistances.

Earlier in the morning there was a huge uncertainty about the market direction after the release of GDP data. I am not surprised to see the market trading intact. The prime reason being, the market has never dreamt of reading some dramatic +ve data in the 4th quarter GDP data, for it has already been discounted and the impact has already been felt. The current market rally is mainly contributed to the fact there is a justifiable positive expectation on the 1st quarter results from the banking sector, the inference of that has been made few weeks ago by some banks’ heads.

Although, I would take precautions at these levels as there are bright chances for good amount of profit booking prior to the quarterly results start flowing in, there is still scope for Dow Index testing higher levels.

DJIA-Fut-H4–ChartsDJIA-Futures-26-03-09

My resistances for Spot DJIA are 7813, 8181 and 8203 and my supports are 7628, 7549 and 7387

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