Descending Triangles

[Garpal Gumnut]

For those with an interest in this TA phenomenon, there is a rather nice example developing atm in the djia.

I'm having data probs and am unable to post a chart.

It looks worrying for anyone still long in the markets next week.

Here is a link in wsj. Just go to weekly over the last year and you will see it breaking last week.

http://online.wsj.com/mdc/public/npage/2_3051.html?mod=mdc_h_dtabnk&symb=DJIA

gg

 

[nulla nulla]

Certainly breaking through support lines.

 

[Sean K]

Similar story with XAO. Serious support levels taken out. Untidy.

 

[nulla nulla]

you think thats a decending triangle, how about this one? Where to next?

 

[Garpal Gumnut]

According to the theory of deccending triangles the DJIA should retrace to about 9750 and then lose about 1500 points, settling about 8200, before the next move.

Lets see how it pans out. It is a lovely triangle.


gg

 

[glenn_r]

Looks more like a head and shoulders pattern on the DJ to me...