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.