The daily price on the DJIA seems to be respecting a level of resistance dating from about July 16 and 17 (the upper red line on the chart). The resistance slopes slightly downhill, almost echoing the 250-period simple moving average, which is the top black line on the chart’s right side.
Of more interest is the lower support line, which is a continuation of the developing triangle that began with the recovery candle on August 25. When adjusted for the bounce of November 13 and November 16, it cuts off one of the swings down, but still describes the chart’s price action best. Where the triangle starts to narrow, it’s almost echoed by the 50-period simple moving average (the lower black line on the chart’s right side).
The moving averages echoing the triangle show that it’s not just a figment of my overactive imagination. Once again, the DJIA is consolidating into a triangle, the moving averages converging and putting pressure on the price. Once again, there's the chance of a breakout, higher or lower. There still doesn’t seem to be much room for a breakout higher, but there’s still a lot of room for a break lower.
Merry Christmas, traders.
I haven’t had the heart to comment on the Paris attacks. But this article by Kieran Corcoran for the UK Daily Mail gave me a much-needed laugh.
Rick Astley is brought in to fight ISIS: Anonymous hijack Islamic State Twitter feeds by tricking jihadis into watching Never Gonna Give You Up video
And if you've been a victim in the past of a young family member’s political rant around the Thanksgiving table, you might appreciate this take on talking politics during the holidays. From the Wall Street Journal’s Josh Zumbrun:
5 Facts to Silence Your Smug Millennial Nephew This Thanksgiving
The second link is not behind the usual firewall. Thanks to the WSJ, because that advice needs to get around.
Thanks for stopping by. Happy reading and happy Thanksgiving!