Tuesday, Nov 18, 2008
The Dow Jones Industrial Average could sink as low as 6,700 before the year is out, in another accelerated down move similar to October’s slump, Roelof van den Akker, chartist from ING Wholesale Banking, told CNBC.
“The price target for this year is still 6,700, so that’s a lot of downside potential,” Akker told “Squawk Box Europe.”
Charts of the Dow show the “completion of a bearish pattern,” which is “suggesting the same accelerated down move as back in October,” Akker said.
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The Dow [.DJIA 8273.58 — UNCH (0) ] lost over 13 percent of its value in October. It closed at 8,273.58 on Monday, which is over 1,500 points higher than Akker’s prediction for the year.
If the Dow closes below 8,175 then the next level of support for the index will be between 7,450 and 7,200, which were the October lows of 2002 and 2003, Akker said.
“The picture is bearish and we expect lower prices within the coming days and also weeks,” he added.