Is March 2009 forming a hammer?

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DJIA = 7486.58

First of all thank you for reading this post :)

It has been quite a while since my last post :)

Let me introduce you to the above chart generated for us by bigcharts.com :)

This is a monthly candelstick chart of the DJIA for the past decade.

We can note from this chart that the DJIA has again formed a new low for the past decade.

I can only hope that the DJIA is truly forming a hammer for the march 2009.

What Does Hammer Mean?
A price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick.

Investopedia explains Hammer
A hammer occurs after a security has been declining, possibly suggesting the market is attempting to determine a bottom.

The signal does not mean bullish investors have taken full control of a security, it simply indicates that the bulls are strengthening.

(from Investopedia.com)

The MACD still signals a bearish sign...

The RSI is slightly above 20 and is still indicating an oversold level. RSI below 20 last february is the "weakest" the DJIA has been in the past decade. We truly are in a situation wherein we need a technical bounce in order to resolve the overbought condition of the DJIA. Is the possible formation of a hammer in march 2009 the herald of a possible technical bounce?

Again, thank you for reading :)

Good luck in all your trades :) take care and god bless :)

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