Monday, April 26, 2010

$DJUSFN Triangle

If that yellow TL support goes, 296 is the first target (lower BB, 50% retracement and orange support line). Of course this is most likely a short set up to execute a few more bears. I am not long anything here. What is most interesting to me about this chart is in that big pink circle. These things don't always come true, but when they do it is cool. That is an intersection of the blue bull corrective's upper resistance line, the apex of the triangle and the February support line. These things can be like magnets and cause significant market moves. So, if it breaks down (somehow below the yellow support line), could it possibly backtest at that point and then head south? Interesting thought.