Where Now, Mr. Dow?
Posted 10-20-2009 at 03:44 PM by fxKnight.com
Andrei Pehar, Chief Currency Strategist, fxKnight.com
Looking at a very long-term view of the Dow on the weekly chart, price reached a peak high on Oct 7th, 2007 at 14198.00 and reached a low on March 1st, 2009 at 6474.09. As of this writing, the Dow is currently about half-way between the 38.2 and 50.0% retracement levels of this move.
On Oct. 2nd, 2009, price on the Dow hit the 38.2% level of the weekly Fib, and the 61.8% retracement level on the daily Fib at 9420.69
Last week price snapped to the 118% extension on the daily and bounced down.
The long-term targets to the upside would be the 10334.08 at the 50% level on the weekly Fib, and the daily 161.8 extension at 10483.90
Intermediate upside targets along the way would include the 127% daily Fib level at 10134.25 and the 138.2% level at 10224.25
The long-term target in a downside scenario would be a return to the 38.2 weekly Fib, and the 61.8 level of the daily at 9420.69
Support levels to watch along the way include 9917.29, 9727.65, and 9610.33
Looking at a very long-term view of the Dow on the weekly chart, price reached a peak high on Oct 7th, 2007 at 14198.00 and reached a low on March 1st, 2009 at 6474.09. As of this writing, the Dow is currently about half-way between the 38.2 and 50.0% retracement levels of this move.
On Oct. 2nd, 2009, price on the Dow hit the 38.2% level of the weekly Fib, and the 61.8% retracement level on the daily Fib at 9420.69
Last week price snapped to the 118% extension on the daily and bounced down.
The long-term targets to the upside would be the 10334.08 at the 50% level on the weekly Fib, and the daily 161.8 extension at 10483.90
Intermediate upside targets along the way would include the 127% daily Fib level at 10134.25 and the 138.2% level at 10224.25
The long-term target in a downside scenario would be a return to the 38.2 weekly Fib, and the 61.8 level of the daily at 9420.69
Support levels to watch along the way include 9917.29, 9727.65, and 9610.33
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Andrei Pehar, Sr. Currency Strategist, fxKnight.com
Andrei is a private fund manager, consultant to management, and a sought-after speaker and coach for professional traders and individual investors alike. At a young age he was already playing in professional chess tournaments, and went on to further hone his strategic skills through years spent studying Japanese martial arts. From both worlds, he brings with him a unique perspective to the financial markets.
His client list includes prestigious names such as UBS, Tower Asset Management (named by Bloomberg as top asset manager), Clifford Associates (investment counselors since 1915, officially acknowledged as the oldest in the United States), and several other high profile firms specializing in investment and wealth management for musical artists, sports celebrities, and other ultra high net worth individuals and trusts.
Andrei is a regular contributor to BabyPips, DailyFX, and FXStreet. He is currently working on a book which will, for the first time, introduce retail traders to institutional trading strategies and techniques. His site fxKnight.com provides free tools and strategies for professional traders and individual investors (including live chat, strategy forums, training videos, worldwide market news, and streaming ForexTV).
Click Here to view videos by fxKnight
Andrei is a private fund manager, consultant to management, and a sought-after speaker and coach for professional traders and individual investors alike. At a young age he was already playing in professional chess tournaments, and went on to further hone his strategic skills through years spent studying Japanese martial arts. From both worlds, he brings with him a unique perspective to the financial markets.
His client list includes prestigious names such as UBS, Tower Asset Management (named by Bloomberg as top asset manager), Clifford Associates (investment counselors since 1915, officially acknowledged as the oldest in the United States), and several other high profile firms specializing in investment and wealth management for musical artists, sports celebrities, and other ultra high net worth individuals and trusts.
Andrei is a regular contributor to BabyPips, DailyFX, and FXStreet. He is currently working on a book which will, for the first time, introduce retail traders to institutional trading strategies and techniques. His site fxKnight.com provides free tools and strategies for professional traders and individual investors (including live chat, strategy forums, training videos, worldwide market news, and streaming ForexTV).
Click Here to view videos by fxKnight
