USA | EQUITIES | TECHNICAL ANALYSIS
• The current picture resembles the pre-crash moment of the DOT-COM BUBBLE and SUBPRIME MORTGAGE CRISIS
• The DJIA index falling 661.89 points(3.69%) from last week could be the finishing touch to the real crash
CHARACTERISTICS OF A CRASH
What it looked like before the DOT-COM BUBBLE crash (Weekly timeframe)
1) Price started to show real signs of weakness with big bearish bars usually BEARISH ENGULFING BAR and BEARISH OUTSIDE BAR ranging from 3.47% to 10.71%.
2) A strong close below the 60 week moving average.
3) The 20 week moving average crossed below the 60 week moving average eventually.
4) Price made a last surge back above the 20 and 60 week moving average
before closing back below which turned out to be the start of the crash. (Read Report)
Source : Phillip Securities Research
Labels: Technical Analysis