DJIA Testing Potential Diamond Trendline Support Zone

Choppy swings continue to plot the peaks and troughs of the giant diamond formation.

Upside Resistances

1. Upper resistance zone of green dotted channel

2. Green dashed down trendline of the diamond

3. Green bold down trendline of the diamond

4. Blue dotted resistance zone

5. Peak of diamond top


Downside Supports

1. Red dotted support zone of the red upper channel trendline

2. Lower support zone of green dotted channel

3. Orange dashed support belt

4. Red dashed median band of the red channel

5. Lower support of the red channel


Take note that any retest of the diamond top may result in a potential double top scenario. Further upward strength will confirm a continuation diamond pattern.

Conversely, if the lower support of the red channel fails a diamond top pattern will be confirmed and the index will probably plummet towards 8000. If weakness persists at this region a retest of the March 2009 low is imminent.

Yanlord Gravestone Doji Double Inside Day Compression

The double inside day compression pattern denotes a potential breakout scenario. Take cue from the direction of the breakout. Upward breakout will result in a rebound from the immediate support of the dual upper boundaries of the blue channel and challenge the orange resistance zone. If the orange resistance zone is cleared the red bold dual resistance band will be tested.

Conversely, a downward breakout will demolish the immediate support of the upper boundaries of the blue channel and test the red dotted band support zone. If further weakness persists support will most probably be established at one of the following support zones:

1. Lower support boundaries of the blue channel

2. Green trendline support

3. Congestion rectangle 1.59 to 1.56 range support

4. Double bottom buffer zone

CapitaMalls Asia Upper Channel vs $2 Milestone Support

25 Aug 2010
Doji rebound from orange support zone

27 Aug 2010
Doji once again as indecision returns. A potential challenge to test the upper channel resistance is imminent with DJIA good closing figures on Friday.

Any breakout above this channel resistance will retest red resistance zone followed by green dashed resistance line. A strong breakout above the green dashed line will probably herald a change in trend from down to up.

Take note that the orange support zone is a major support that has been tested 4 times and a breakdown below this zone will retest the next support at the green zone.

Genting Channel Projections of Bowl Breakout Pattern

Bowl pattern breakout currently testing dual resistance of median zone of the red channel. Bowl breakout measured move target is around 1.80 but needs to punch through red channel median resistance zone. A successful breakout above red median zone will test blue channel dual upper resistance band.

Support zones for pullback may be found at the following locations

1. Lower dual support lines of blue channel

2. Red channel lower support

3. Green gap support zone

4. Mid marubozu support at 1.40

5. Light blue gap support area

DJIA Potential Head and Shoulders Clone Within Potential Diamond

Pattern within pattern fornation being created by the DJIA. Immediate support is the pink dotted support zone. A rebound from this pink zone will probably be halted by the blue descending resistance joining the peaks of the diamond top head and the peak of the right shoulder of the potential head and shoulders clone. In the event of an unexpected breakout above this descending resistance the upthrust will encounter next resistance at the light blue dotted zone. If further advance continues a retest of the diamond top head peak may result in a potential double top pattern.

Conversely, further weakness below the pink dotted support zone may find support at the green dotted support zone. A breakdown below this zone will confirm the potential clone head and shoulders pattern and the potential diamond top formation.