Dow Jones Industrial Average Forecast August 23, 2012, Technical Analysis

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By FX Empire Analyst - Christopher Lewis
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The Dow Jones Industrial Average had a soft day on Wednesday, but bounce from the 13,100 level in order to form a hammer. We are at extremely high levels currently, and trying to break out of the recent funk that the market has been in.

Back in the beginning of May, we saw the market completely fall apart until the beginning of June. We have gradually stair stepped our way higher, and as such we are currently trying to break above the spot of resistance that started the downward movement in the first place. This is always a difficult proposition, but it does look as if the market is ready to take it on.

Because of all of this, we are very bullish of the market, and would be buying if we can get a daily close above the Tuesday highs as it would show that the resistance has come undone. As for selling, we see no real interest in it right now simply because there far too many support levels below. We would have to get below the 12,900 level to seriously consider it at this point.

 

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