Diamonds are Sparkling
- Posted by Greg Harmon
- on February 28th, 2012
Today marks the end of the end of February and time to step back and look at the longer term charts to gain perspective. Despite one day left in the Month, the monthly chart for the SPDR DJ Industrial Average ETF, $DIA, is not going to change character unless Monday closes under 125. Not only does this chart show the long bullish run off of the Triple Bottom near 60 since march 2009, but it screams that we are going to continue higher.
SPDR DJ Industrial Average ETF, $DIA
in January it broke above the Double Top and February is confirming higher. The first target on a Measured Move takes it to 138. It has support of the Relative Strength Index (RSI) bullish and rising and the Moving Average Convergence Divergence (MACD) indicator positive and rising. The second Measured Move takes it to 170. You could also create targets from the Fibonacci extensions of the retracement of the move lower from 2007 to 2009. These come at 151 (138.2%), 159 (150%) and 167 (161.8%). Need more ammunition? Well the Point and Figure chat measures a price objective of 154 from the Double Top break. Notice how none of these mention any kind of pause at the current 130 level? Still think that 150 on the $DIA or 15,000 on the Dow Jones Industrial Average, $DJIA, is pie in the sky?
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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