The Dow Jones Industrial Average (DJIA) recently broke through resistances that had held the index in a sideways zone for nearly 6 months, from May 2013 to November 2013. As predicted, on the break of resistance at 15655, the index has renewed its previous trend & is now at 16500.
The old support & resistance points/zones are marked in the chart above, you can click on the following link to read the older post on the DJIA - http://www.marketlok.com/4/post/2013/10/djia-index-the-government-shutdown-blues.html
Lookin at the present, as mentioned earlier the DJIA has renewed it's previous up-trend & has already moved up over 900 points. The index is holding support levels very well as of now & has shown very large momentum. This is expected as the 6 month sideways zone on the index has acted as a propulsion zone.
Supports for the index are at 16196, 15704, 15530 & 15396. The support levels at 16916 & 15704 are strong, some price action around these price pints will not do any damage to the index in the medium to long term. The support levels at 15530 & 15396 form a support zone, which is very strong & hence important. Any breach of this zone will end the prospects of the up-move continuing & might push the index into a sideways zone or even into a down trend, which looks very unlikely as of now. Resistance will be seen at 16690, 16958.5 & 17300. These are also the next immediate targets for the index.
The index has surpassed all performance expectations so far. The sideways zone from May to November 2013 has only made the trend stronger. The DJIA is still very bullish & will remain bullish as long as it holds important support levels, which are - 15530-15386 as of now.
Intuit (INTU) has given a buy signal on the 27th June 2013 with the break of resistance at 59.75 & an entry price of 60.3. The chart shows the stock to be volatile, which is a sign of caution for investors as the stock might move in large price ranges very easily, but at the same time being a high risk stock it might also be a high return investment.
Major resistances, as of now, lie at 63.45 & 66.8. If and when the stock closes above its highest resistance at 66.8 & further remains above it, we might see a continuation of the present trend into a long term rally. Support and stop loss lies at 55.5 as of now.
Support – 55.5
Resistances – 63.45, 66.8
Walgreen Co (WAG) has signaled an exit on the break of important support at 48. Resistance is seen at 48, 46.7 & 45, whereas critical support is at 40 breaking which the stock might see much lower levels. We also derive from the charts that WAG is a highly volatile stock which tends to break important supports and as well as resistances frequently. But having said that, the stock still looks to be downwards but any quick reversals are not to be ruled out.
Supports – 40
Resistances – 48, 46.7, 45
Apple Computer (AAPL) topped out reaching $700 in September 2012 & is now at almost half its highest price. Looking at the chart now, we’re able to see the stock has entered into a base forming zone since May 2013. Within this area the stock might slip further, stabilize and form a base or quickly reverse providing a medium term investment opportunity or maybe even do a complete reversal, this is all very unsure as of now. But what we know for sure is that this is a candidate of interest i.e. place it in your watch-list now and watch for a future opportunity to arise because the stock shows signs of entering a base formation stage.
After topping out it broke through 535.5 which was a critical support. Further the stock broke another critical support at 455 recently, hence maintaining its downward trend. Support levels if prices fall further are at 385 & a very strong support is seen at 240. Critical resistances are at 455 & 535.5, important but lighter resistances are seen at 483.5, 502 & a very strong resistance if prices rally up suddenly is seen at 590. A buying possibility has not developed yet in the stock, but it is on our watch list and might be an interesting stock to enter if and when it turns around.
Supports – 385, 240
Resistances – 455, 483.5, 502, 535.5 & 590