September 30, 2010

  • Apple Hour chart, The stock is steadily climbing down.
  • Today it broke the support at 285. Now there is an up move happening from 282 to 285.
  • 285 will act as resistance for now.
  • The weekly chart looks bearish after today's false breakout.
  • A bearish weekly candle in the making after 4 positive ones.
  • It seems 1150 is not going to be broken in a hurry unless some great news comes out.
CHART-III
  • Could not sustain above 1150 the breakout has failed
CHART-II
  • The breakout shown in the below chart should sustain above 1150 otherwise this will be a failed breakout.
  • Another attempt with good volume may do it for the bulls. If the volumes are low it's not going to sustain above 1150.
CHART-I
  • S&P 500 Futures has broken out of the triangle pattern
  • Index has also given a breakout above 1150.
  • Bears would be hoping for a false breakout which may happen if the index starts to trade below 1150 again.
  • First target for this breakout would be 1160 provided this is not a false breakout.
CHART-II
  • S&P 500 Futures breaks out of the triangle and the spot breaks 1150 resistance
CHART-I
  • S&P 500 Futures Hour chart is trading in a triangle. Price is approaching the apex of the pattern. The current price action seems to be favouring bulls.
  • If the Triangle breaks out on the upside S&P 500 Spot may breakout above 1150 resistance.
CHART-II
  • Crude hits $80 as discussed below. And it also hits the resistance line of the Triangle.
  • Up move from here is possible only if the weekly triangle breaks.
CHART - I
  • Crude Oil weekly chart in a triangle pattern.
  • Right now it is rallying to the resistance line of the triangle.
  • A possible target of 80$ for the current up move. At around 80$ Crude will hit the resistance line of the Triangle.
  • For further up move Crude should breakout of the triangle
  • A possible head and shoulders pattern shown in Nifty futures hour chart.
  • One thing to note, this is an assumption. This is possible only if NF rallies up to 6020 - 6030 levels, Finds resistance there. Then a sell off to break 5966. So everything has to work picture perfect if this is to come true.
  • I am just showing a possibility. If Price action obliges this pattern will be shown on our trading screen then only one has to take action.
  • Bears will be hoping for a close below 5956 so that this support area becomes a resistance.
  • Bulls will defend 5956 so that they can scale 6000 again.
  • Many times the bull market starts with a W formation. and it ends with an M. This is not a thumb rule but has seen this happen many times.
  • By Showing an M i am not suggesting that this up trend is going to end. But one should take a note of the weakness that occurred followed by such a patterns occurrence.
  • Now one should watch the levels of 5956 in NF. Breaking below it will give sharp correction and it will break an important support. Then that support will become resistance.  
  • Nifty is not able to close above 6035 levels.
  • Index is facing selling pressure at higher levels shown by the upper shadows of the candles. Sometimes these show the exit of smart money before big corrections. But nifty hasn't breached important levels for the bulls to get worried. One of the criteria can be a close below 5 day low ema. But one word of caution is that 5 day low ema has acted as support zone also. So one should have tight stop loss for going short especially because of the prevailing trend which is up.
  • As said above a only firm close into the selling zone of nifty that is above 6035 can take nifty to new high's.
CHARTS POSTED TODAY

    • First chart shows price converging between support and resistance lines which will lead to a breakout today.
    • Stock is resting on its 50 DMA, So after the breakout stock will move away from its 50 DMA. Take a trade based on it, one should also keep in mind the supports and resistances for the stock which is at 993 and 200 DMA.
    • INTRADAY LIVE CHART RELIANCE INDUSTRIES
    • Bank nifty is showing a range of 12068 one the down side to 12363 on the upside.
    • We will get range bound moves till the index trades within this range.
    • If bank nifty closes below the 5 day low ema then price may test the low end of the range at 12068
    • SPY hour chart looks negative. 
    • SPY has violated the support line in hour chart.
    • Hour closing below 114 will be negative for the bulls
    CLICK THE CHARTS TO ENLARGE
    • S&P 500 Futures is trading below its 50 Hour moving average
    • Index is moving towards the support line of the triangle formation.
    • Support for the index may come in-between 50% - 61.8% Fib levels.
    • Failing to take support at the support line of the triangle and breaking 61.8% Fib level will be negative for the bulls.
    • S&P 500 is approaching its main resistance of 1150.
    • A good volume breakout will help continue the previous trend in daily chart.
    • If gets resisted here it will be negative for the index. This is third attempt to breakout above 1150 so getting resisted here will lead to good correction.

    September 29, 2010

    • S&P 500 Futures 4 hour chart is showing a triangle pattern with price trading near the resistance line of the pattern.
    • From yesterday the index is not able to sustain above 1143 levels. although the bulls tried to close above 1143 it was met with stiff resistance at this level.
    • Only a high volume breakout above 1143 level can take it to 1150 where it will meet the next resistance. 
    • NF daily candle is showing a bearish engulfing.
    • If price opens and starts to trade below this candle it can give good correction.
    • NF also closed below 6000.
    • Nifty futures hour chart with fibonacci levels.
    • The zone between 50% and 61.8% level should give support for Nifty Futures.
    • Failing to take support at 61.8% level should bring NF down to 5970 - 5980 levels at least
    • INTRADAY LIVE CHART FOR NIFTY
    • Nifty Futures is showing a range of 5942 - 6091 With 6001 as the main support level within this range.
    • A Bullish zig zag is possible Provided 6001 the higher low is protected.
    • Reliance industries has good support at 993 level. 
    • 50 DMA of the stock is also situated around the same  level.
    • So we can expect some action from here. If 50 DMA gives support we will see 1007 and 1030.
    • If 50 DMA breaks we will see 960 levels in RIL.
    • INTRADAY LIVE CHART FOR RELIANCE INDUSTRIES WITH EMA
    • If the bulls have to avoid a big correction they should push the price above the shooting star pattern created day before yesterday.
    • Yesterday Nifty gave some correction followed by the inverted hammer but the bulls managed to make a good comeback.
    • So Real weakness is not yet visible. Price is yet to hit the 5 day low ema after the breakout. Weakness only when nifty closes below 5 day low ema.
    • NIFTY CHART - BEAUTY OF FIBONACCI  LEVELS
    HOUR CHART
    WEEKLY CHART
    • Hour chart is showing an ascending triangle formation with upside breakout possibilities.
    • If the ascending triangle breaks out on the upside it can break the strong resistance shown in weekly chart. 1150 is the level in weekly chart that looks very strong.
    • S&P 500 Futures 15 minutes chart with resistance area.
    • 1142 is the level to cross for the index to make the next up move.
    • Till then 1142 will act as resistance as it has done recently.
    • Apple today violated its 50 hour moving average after a long time.
    • But an hour candle is yet to close below its 50 hour moving average.
    • Current fall is followed by a rising wedge pattern formed in hour chart.

    September 28, 2010

    CHART-II
    • Dow Jones Futures Index is back to where it started today. It's back to the resistance line from where today's fall happened. Below chart was posted before opening bell.
    CHART-I
    • Dow Jones futures 4 hour chart with the ascending channel.
    • The upward momentum is halted by the  resistance line developing within this channel.
    • This resistance line has to be broken for further up moves to happen.
    CHART-II
    • NF gets support at 61.8% Fib level
    CHART-I
    LINE CHART
    • NF is trading near 61.8 Fibonacci levels for hour chart.
    • 6025 is an important support area for nifty.
    • IF 61.8% level holds we may see an up move from here. Should trade above 6025 for big up moves to happen.
    • Below 61.8% level NF may go down till 5970 levels.
    NIFTY HOUR CHART
    • First chart shows the breaking of the triangles support line and the correction.
    • Second chart is the hourly line chart which shows the important support line for NF at 6025.
    • Staying below 6025 will be negative for the bulls.
    • INTRADAY LIVE CHART FOR NIFTY
    CHART-II
    CHART-I
    • There is a Triangle formation developing in nifty futures chart.
    • Right now price is resting at the support line of  the triangle. A move towards the upper end of the triangle is possible.
    • Breaking the support line will be negative and may attract strong selling.
    • NF broke down from a channel formation yesterday.
    • Today it is forming another channel this one a descending one.
    • If 6042 is not defended by the bulls, Bears will gain strength.
    • Breaking out of the channel will favour bulls. 
    • Tata steel weekly chart is showing resistance at 661.
    • More upsides possible for the stock only if it manages to cross this level.
    • Tata Steel had a great bull run from 500 levels to nearly 650 in 5 weeks time. So the stock may take a pause at 660 levels.
    • Since i am posting about Tata Steel i take this opportunity To thank ILANGO Sir for posting a great article about the Tata Steel plant and the Kind of work Tatas are doing for our nation: CLICK HERE TO SEE THE ARTICLE
    • Nifty spot daily chart is showing a shooting star or an inverted hammer pattern which is a bearish reversal pattern.
    • Every candlestick pattern needs price confirmation. Example for price confirmation would be a touch of the 5 day low ema which Nifty has not done since this breakout happened.
    • I have also added Nifty futures 5 minutes channel which shows a breakdown and the breakout line is acting as resistance.
    HOUR CHART
    DAILY CHART
    • S&P 500 Hour chart looks negative but has closed above 50 hour moving average.
    • The daily chart is also closed above the breakout point and is above the 10 DMA.
    • So the TA set up for the bulls are still intact not major changes have taken place it can be said as a pause day after a good closing on friday.

    September 27, 2010

    DOW JONES FUTURES HOUR CHART
    • Dow Jones Futures Index is showing a range of 10755 - 10844.
    • Within this range Dow is Trading near a resistance line. Breaking out above the resistance line will take it to the top of the range. If gets resisted by the line, index will move towards 10755.
    • Dow Jones futures daily chart shows an ascending channel.
    • Price at the top end of the channel. Candlestick pattern for the previous day shows an inverted hammer which is bearish.
    • Bulls will be safe only if the index trades above the inverted hammer.

    Disclaimer

    All the contents of niftychartsandpatterns are for educational purposes only and are not Investment Advice or recommendations offered to any person(s) with respect to the purchase or sale of the stocks / futures. Niftychartsandpatterns shall not be held responsible for the actions of individuals, parties, or corporations taken in response to the ideas, thoughts, concepts or information presented in this blog. Hence all the visitors are requested to apply their prudence and consult their financial or investment adviser before acting on any of the Ideas in this blog.

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