This is a weekly candlestick graph of Dow Jones Index. The first line above is the neckline of a head and shoulders formation. This represents the long term resistance for DJI. The middle line is where we are currently close to. DJI has been ranging between 12000 to 12770. We are testing this resistance right now and chances are we will not break through this resistance. Therefore a pullback should be in play at this very moment. Should the pullback happen during this week, we may foresee a dark cloud cover happening at this very resistance line, making next week a very good short selling week. The target will then be the support of 12000. Dont hold your shorts unless u see it breaking through 12000. Dow is still trending sideways.
I suggest shorting Aloca to $35. Weak demand, high oil prices though high aluminium prices, weak dollar and strong local currencies will translate to a low profit margin.
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