DJIA March contract Forecast for 21st January 2013

DJIA March contract Forecast for 21st January 2013
DJIA March contract Forecast for 21st January 2013

Dow Jones Industrial Average Future did sell off towards 13494 as we warned but bounced just above at 13514. We have now finally reached our target of 13600 with a top at 13604 so far.

The daily and shorter term charts are severely over bought and 13600 is quite tough resistance. Profit taking from here would therefore come as no surprise today and should target 13554 at first and then 13523/516. Watch for a low for the day here but any longs attempted will need a stop below 13490 for a possible test of support at 134612.

13600/604 should remain an obstacle but a break above here means the overbought situation needs to be ignored and challenge of the 2012 high at 13717 is then possible this week.

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