DOW

could this be the start of the Santa rally????
I hope so...

Dow looks like its going to breakout today from the top of the channel. Due to the close proxemity to the top of the channel it's likely to breakout so shorts on first attempts should not be executed.


dl.dropboxusercontent.com/u/4899609/dow14thnov2013.png

The top of the channel is at 15852 . So a breakout above this could signal a move to 16850 as the channel is 1000 points long.

im looking to go long on the first attempt of the bottom channel on the hourly chart. Im using a 30 point stop.


dl.dropboxusercontent.com/u/4899609/dow13thhourlynov.png

i think its time to revisit this post from back in Mar 13 (when Dow was breaking out of its all time highs from 2007) and provide an update on the chart.

The breakout was indeed powerful, where to next and what will happen thereafter, maybe the devil is in the detail and scattered in the past to forecast the future.... just something to think about, we could be in going into blue sky territory and upper targets are becoming much harder, i would not discount the bull extending either..there is wave count to support it, we'll just have to see if another breakout and confirmation of it takes place or not.



dl.dropboxusercontent.com/u/40497882/Dow_Breakouts.JPG

The market floods you with many tools and indicators but more often than not simplicity is the best policy.

all imho, dyor etc...

rgds,

WS (a Bull until the market say's it's not)

WaveSurfer wrote: Here's a quick analysis of the Dow when it has taken out it's previous (all time) highs over the years...

on the chart you will see: est breakout targets based on previous range vs actual top price and the respective difference, hopefully the chart is self explanatory....

apart from what i have put on the chart, there are some other observations to be made with respect to the length of time it has taken the dow to get to it's previous highs and once it has, the results thereafter as an example....

dl.dropbox.com/u/40497882/dow_historical%20breakouts.JPG

just something to ponder [/quote]

The top of the channel is at 15839.
worth a short during market hours on a first attempt basis with a 25 point stop.
im using tight stops as if its a real breakout then the dow could head upwards fast.
Ill be looking to go long on the back test of a breakout if it happens.


dl.dropboxusercontent.com/u/4899609/dow7thnov.png

It doesn't appear so just yet, but is approaching.