Weekly Market Update
26/Aug/2007 08:30 PM Filed in: Finance
*** WARNING: This is not trading advice, so please
don't use it for your trading decisions. Any actions
you take based on the opinion below are solely at
your own risk.
The positive MACD divergence highlighted in the chart below has certainly led to an increase in the Dow, but on rapidly decreasing volume. This rally, therefore, is suspect. A break of 13,250 could lead to another decline (watch the volume pattern!). So, the plan is to enter a short trade at 13,250, with an initial target of 12,800 and a potential target of 11,950.
The positive MACD divergence highlighted in the chart below has certainly led to an increase in the Dow, but on rapidly decreasing volume. This rally, therefore, is suspect. A break of 13,250 could lead to another decline (watch the volume pattern!). So, the plan is to enter a short trade at 13,250, with an initial target of 12,800 and a potential target of 11,950.
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