18th Nov 2010 – Pattern Study on DJIA

Ticker:

1. DJIA

Topic:

1. Is the BULL run on March 2009 Obvious?

Lesson Learnt:

1. There is absolutely no reason to miss the March 2009 BULL run. No reason at all.
2. The first few Bullish Harami formation are the killers. They were fake bullish formation where their line of support are finally penetrated downwards.
3. First Bullish Harami on March 2009 might makes you think that it is another fake formation. However, one week later another bullish Harami formation appear again. That should give the first confirmation. This confirmation also protrude the trend line at the same time. In this case investors have to jump in and should not wait for a retracement. The retracement may not come because everybody has gone through a long Bear market and now everybody are rushing in.
4. Weeks later 20MA line was protrude, serve as another confirmation again.
5. Months later, it retraced back to 20MA line which serve as a good adding point if you already bought in previously. If you have not, it is time to get in NOW.
6. A bounce on the 20MA line gives a very strong confirmation again.
7. Within that week, that bounce penetrate 50MA line - What's more confirmation that you need?

Intraday Chart

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Historical Chart