Dow Jones 11-01-12

2011 is a very high volatility year for Dow Jones, it fluctuated for 2473 points that year due to AAA credit rating downgraded by S&P to AA+ and the sovereign debt crisis in Europe.

What can we expect in 2012 ?

In the above chart i plotted the 2011 high, low and drew a red line which is the average of the high and low. If the price able to trade above the Red Line i will consider bullish or otherwise.

In technical perspective, Dow Jones is now trading in an short term uptrend and price are trading above all moving average. Divergence were spotted in the MACD and RSI indicate that the upward momentum is weakening. Therefore, i will expect a pullback in the near term and the support and resistance is pegged at 12000(50-days & 200-days MA) and 12750.