Sunday, November 25, 2012

mini Dow (update)

We were able to break through and hold the resistance level ~ 12750.  The only concern is that it was the day before and after Thanksgiving, which were both low volume days.  The upcoming week should give us a more valid indication of this market's recent strength.  First, on the positive side we closed above the 10 and 20 DMA, got a MACD bullish crossover, and broke above a downward sloping RSI trendline.  Second, some upcoming obstacles could be the 50 and 100 DMA, the monthly pivot @ 13185, and the swing high @ 13251.  My first target for exit is 13025, where I will get out of half my position.  My second target is just below the monthly pivot @ 13150, where I will exit one contract.  I will look to ride the final one lot with a trailing stop in case this market makes a run at new highs.

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