Dow closed at 16117, down 25 points, on 16 Oct 2014. This may be considered as a breather for traders on long side. It could have been much worse. Day low was 15935 and hence the hammered price of previous session has held. You would recall that in my preceding post I had mentioned about "Hammer" formation in Dow chart on 15 Oct 2014; and hence the day low of 15 Oct 2014 of 15855 should hold for the time being.
As long as this hammer price of 15855 in Dow holds, we can be sure that prices will drift northwards. This upward movement should take Dow to 200 day moving average line of 16588. However this journey is expected to be volatile because deep cuts take time to heal.
As long as this hammer price of 15855 in Dow holds, we can be sure that prices will drift northwards. This upward movement should take Dow to 200 day moving average line of 16588. However this journey is expected to be volatile because deep cuts take time to heal.
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