Dow Jones is forming a head and shoulders pattern

Technical Investment Methods - Analyzing market trends with technical methods. 

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Subject Author Date Dow Jones is forming a head and shoulders pattern dj30 07-13-2008
Posted by dj30 on July 13, 2008, 1:07 pm Dow Jones Industrial Average long=96term chart is forming a head and shoulders pattern. The projected price decline for a head and shoulders pattern is usually found by measuring the distance from the neckline to the top of the head. This distance is then subtracted from the neckline to reach a price target. The calculation gives approximately 9,000 as a rough long-term target. This price target looks very pessimistic now, and it should be considered with other technical indicators as well. Daily and weekly technical indicators are oversold. The neckline (around 11,500) now becomes an important resistance level. The Dow Jones may retest this level before moving down to a 9,000 long-term target. http://www.thegreedytrader.com/QQQQTrendAnalysis.aspx?p=3D195 Similar Threads Posted See which index is forming a Head and Shoulders Top July 19, 2007, 8:45 pm *******************The Power Of The Head And Shoulders Formation **************************** October 31, 2007, 11:06 pm The QQQQ is forming a symmetric triangle pattern February 17, 2008, 2:19 pm Dow Jones had a Bearish Advance Block pattern. December 9, 2007, 10:09 am The QQQQ is forming a new falling channel June 29, 2008, 3:26 pm Chart Pattern Watch for 11/27/07 November 27, 2007, 10:02 am Triangle Chart Pattern Lesson for 2/26/08 February 26, 2008, 8:13 am 10% of S&P stocks had the Deliberation pattern on Friday June 17, 2007, 5:01 pm Triangle Chart Pattern Trades April 23, 2008, 8:30 am S&P 500 has formed a Bearish Advance Block pattern July 20, 2008, 2:39 pm