DOWJONES the major index outlook

Already we've noticed the crash of all the markets globally. My expectation about Dow as my last post 'dow, what is next of 1st July'08 ' has reached 8000/100 and showed a low of 7882.

Why I'm interested in Dow, b'coz it's the major index of the major economy and can get some clue for base metals or precious metals even our national stock market. National share indices are fallen almost Parrnell but all metal prices are in comparison higher b'coz of USD/INR weakness but at times it'll get balanced.

What can expect now?? Global fundamental situation is not very much clear, huge panic is there, at the same time technically bottom has not formed yet.

Bail out plans for financial sector, reduced food grain prices(US), lowered base metal and crude prices and worse jobless situation may help industries to get some support at least to take a breath to get more news which can show some further direction.

Next possible support area of 7050/150 and 6550 to take a breath at least. In the mid term 5800/5850 can't b ruled out. Before breaking lows, any weekly settlement above 8900, can boost Dow to push up higher.

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GOLD OUTLOOK (short to mid term)

Big question is whether we can go with gold as an investment tool in this area or not? In my view surely gold is solid investment tool but in this price area within current world economic situation should not.

Within very few days may within 1st half of next week we can see gold to move within a range of $664/68 to $748/52. Immediate support $672/74 and $664/668 and immediate resistance is $737and $748/52.Extreme resistance is $788/92 which should not break even not to touch.

In short to mid term can see to gold break the support area of $664/668 towards $572/76, $558 and $538. Possible a consolidation phase can get after getting this support area of $558-$538.

If due to any reason it breaks resistance of $788/92 and can able to hold above then some different situation can arise, although it’s a slim chance.