More than the close, I am observing the high. If you are monitoring the level where the lines will crossed at the sidebar, the high for April18, 2008 (12,893.98) have touched the major downtrendline (for April 18, line 2 = 12,895). Another major observation, line 1 which is the short term uptrend line (for April 18, it is at 12,763.42) is crossing the horizontal resistance at 12,768.Although the high did not break line 2, telltale signs shows that there's already an attempt for a reversal. When it failed to break out from that line, it heads back down but closed above line 1 (which is also the horizontal resistance level for the day).
What can we speculate on the direction of DOW for Monday? I'm seeing two probable scenarios: It will move inside Line 1 and Line 2 area or it will break Line 2. Watch out for the update of the lines on Monday.
You will still see updates of line 3 and line 4 (reference chart click here) but at the moment, these lines are irrelevant.
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