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Old 08-28-2007, 01:27 AM
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Re: DJIA Candles

I think a major difference after Feb 27th was that price kept moving higher after the initial major pullback. Here, we saw price top at 14,000 (it struggled to get there after 13,700). Then it fell and has been making lower highs since then, and there are clear trend lines and we are finding support against one now.

Although this isn't purely technical, some important things are going on tomorrow that may have an impact. We have CCI numbers being released and the FOMC minutes.

After seeing classic resistance today I would be very cautious about going long.

To Brownsfan.
1 - today I think everyone took the day off lol
2 - I agree, especially since we found immediate resistance at Fridays high.
3 - Personally I would exit a good portion of my long position and tightened my stop. Maybe buy a DIA put as a hedge in case of a pullback.

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