Forex Trading: Profit Taking on Wall Street with Holidays Round the Corner and Irish Bailout
Dow Technical Analysis
With the holidays and thanksgiving round the corner, are we going to see the nice government men help prop up the stock market for more happy cheer? All I can see right now is that traders sold on news yesterday after a rally following the announcement from Ireland that they are going to receive some help from the IMF and the Europea Union. That brought some cheer to the markets as stocks and risk currencies rallied on Monday. However, by late Londaon and early US trading session, we saw some profit taking on risk assets. Dow went down to as low as 11,057 from a high of 11, 267. However, it managed to close at 11,185.
On a technical perspective as seen on the charts, the price briefly touched the 50ema before springing back up to close above the 21ema. At this moment, we really can’t tell where the market is going to take us from here. With today being Tuesday, there is still more room for more corrections to the downside before any real rallies to the upside to add to the better festive cheer. Remember, the nice government men wouldn’t want sentiments to be grim during these times. They would want the American public to spend at this moment and wouldn’t allow anything to step in the way of that. So, I feel that the up trend in the Dow is going to stay intact. With the profit taking and sell on news traders out of the way, we could see the Dow go up nearing the end of the week.
Ardy is a Professional Forex Trader specializing in the Forex market. He trades using both Technical and Fundamental Analysis and mentors other traders how to trade the Forex market using proprietary trading strategies which he has developed over the years. He started investing in equities in 1999 and trading Forex in 2008. He is the founder and lead currency strategist @ Forexachievers.com