Action: The figure above is the Dow jones industrials weekly chart. We are at a crucial double bottom region. The question is will this hold?
Guess: In the short term yes? A couple of reasons - The weekly 200d is rising and is right below this chart, probably another 100 points or so atmost. It could be that we touch down before a rally. Also the stochs on the weekly are now oversold. A rally seems imminent, lasting for a week or two.
Somehow, there seems to be a disconnect between main street, with inflation at an all time high and a stock market rally. While in the long term, we are still in the bear camp, nothing goes straight down or straight up. we believe the rally will again face resistance at the weekly 50d, at which point the chart will complete a Head n Shoulder pattern, leading to a further downside in the DJI by the year end. While, this is one particular scenario - pieces of the puzzle are slowly falling into place and only time will tell us the truth. For now, we speculate only the the evidence at hand. Lets see
2 comments:
Do you have an opinion on TSL? It might look like forming right shoulder of unversed H&S pattern here at ~$33 level?
TSL chart doesn't look bullish. It does have a sloping H&S pattern, but the sloping ones usually are failed patterns.It seems oversold like the rest of the indices. For me, this is a neutral stock in its current position, probably slightly bearish.
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