October 31, 2010

  • First chart of apple shows the important support and resistance lines.
  • Stock has good support at 294 levels. Correction that started from 319 levels may get support at 294 or before that.
  • Correction was because of the HANGING MAN candlestick pattern that appeared at the top of the trend. Stock has also broken and closed below 20 DMA as shown in the 2nd chart.
  • Stock may give a buying opportunity if the resistance line in daily chart is violated. Trading above 310 apple will gain upward momentum again. 319 will remain as a good resistance area. Good up moves can only happen when 319 gets broken.
  • NFLX WEEKEND UPDATE

WEEKLY CHART

  • NFLX Daily chart with the ascending channel formation which shows the strong up trend of the stock.
  • But last weeks price action was negative for the bulls of NFLX. 
  • The negative price action is yet to test the GAP between 155 and 165. If the gap begins to fade price may test the lower support line of the channel and go up from there.
  • Weekly chart also shows a negative candle a PIN BAR which is a strong reversal candle. Candlestick pattern needs confirmation so only if the price closes lower a trend change can be expected. So before one decides to shot NFLX they  should have the primary trend of the stock in mind which is UP.
  • So buying on dips closer to the lower support line of the trend line is advisable.  
  • BAIDU WEEKEND UPDATE
BAIDU VOLUME ANALYSIS
BAIDU SUPPORT AND RESISTANCE
  • BAIDU has good support at 107 levels. 
  • The trend line drawn from 76 may also support the stock for the short term.
  • 113.78 is the immediate resistance.
  • Volume analysis shows that the buying volume was very high and the last two days of the week the stock had two negative days which had very low volumes. So we had negative price action with low volumes.
  • Last week when the stock was at 107 we noticed good buying volume and the stock rallied up to 113.
  • CLICK HERE TO SEE LAST WEEK'S VOLUME ANALYSIS ON BAIDU

  • US Dollar showed some strength this week but that is not enough as per the first chart. Price is still below the down trend line drawn from 88.
  • First chart also shows crucial trend line breaks and i feel one more of those trend line breaks may happen before the dollar rallies.
  • But if the trend line drawn from 88 breaks that may give some head aches for the bears of US Dollar.
  • The 2nd chart shows weekly RSI below 30% from here the probability of a reversal is very high but the positive divergence is not yet there. We can clearly see negative divergence when the weekly RSI was above 70% dollar rallied up to 88 and started falling down followed by the huge negative divergence. But i must say that it took many months before the negative divergence showed its effect.
  • To summarise there is an opportunity to sell dollar below 76.14. Things will look positive for the bulls only if the index crosses 79.82.
  • GOOGLE WEEKEND UPDATE

GOOGLE WEEKLY CHART
GOOGLE HOUR CHART
  • Google Weekly chart is showing a PIN BAR Reversal candle near resistance area.
  • It seems 628.94 will be the next resistance for the stock.
  • The shorter term charts like hour is also lacking up ward momentum.
  • Hour chart is showing a negative trend line break. If stock starts to move down a test of the GAP that came after googles results were announced.
  • MSFT Near 200 DMA
  • BAIDU WEEKEND UPDATE

October 30, 2010

  • BAIDU is trading near its 50 hour moving average.
  • If the stock gets support here an up move is possible.
  • If the stock breaks down below 50 hour moving average correction may last till the gap area between 102.40 to 104.70.

October 29, 2010

CHART-II
CHART-I
  • SPY 5 minutes chart with two ranges.
  • The smaller range is between  117.83 - 118.71.
  • The larger range is between 117.26 - 119.11
  • Large movements will be possible only when these ranges gets violated
  • Microsoft was above 200 DMA for sometime today. But stock was not able to stay there.
  • 26.91 is also a good resistance area for the stock.
  • So further up moves will be possible only if the stock closes above 26.91 and the 200 DMA.

  • USDJPY is testing the low of 80.40 again.
  • Breaking 80.40 will be negative for the bulls.
  • This area may act as a support zone as well
  • S&P 500 5 minutes chart with a diamond pattern which is slightly out of shape. But still the pattern touches the trend lines on all sides.
  • Price has entered the pattern from the top trend line. So a break of the support line can be expected for this one. But one has to be cautious because of the time frame, it has come in the 5 minutes chart so reliability is less.
  • EURUSD four hour chart with candlestick patterns.
  • Correction from 1.40 region was after the Gravestone Doji that was shown at the top.
  • Now we are seeing a Dragonfly Doji which is bullish.
  • Price need to cross 1.3952 for turning bullish again.
  • Dow Jones Futures is showing a triangle pattern.
  • Things will turn positive for bulls above 11150
  • Bears would like to see 10960 broken.
  • So a break of the triangle along with the levels mentioned above can give good momentum for the index.
  • GOLD MAY GO UP IF TRADES ABOVE 1350 - CLICK HERE FOR THE CHART

  • ES in a range of 1162 - 1182 with attempts to breakout and breakdown.
  • Those attempts to move ahead have failed so far and price is still in this range.
  • It seems Market is waiting for some big news for making the next move. Only a daily close outside this range can confirm a breakout or breakdown.
  • TRIANGLE OF DOW JONES
  • NF showed a negative breakdown and now back above the support line.
  • Bulls will gain momentum only if they stay above the red line and the most important trend line the black one.
  • Price should trade above 6100.
  • Gold dipped a bit in the past few weeks. But it seems the trend line will hold.
  • If the trend line holds and if 1350 is crossed a good rally can be seen in this commodity.
  • ASCENDING TRIANGLE OF SILVER

CHART-II
  • Breakout from ascending triangle crossed the first resistance at 24.50 and closed above it. the closes seems to be strong, so price may cross 24.91 next week.

CHART-I
  • Silver 4 hour chart with support and resistance lines
  • 24.07 is an important resistance are for silver.
  • above 24.07 main resistances are 24.50 and 24.91.
  • An Ascending triangle has formed in this chart.
  • GOLD MAY GIVE A RALLY ABOVE 1350 CLICK HERE FOR THE CHART
CHART-II
  • The Descending triangle gives a support line break favouring bears.
  • Now the larger fall will be possible if 5937 breaks

CHART-I
  • Nifty futures 30 minutes chart with a descending triangle.
  • Pattern also shows two false breakdowns. 
  • Bears may be lucky the 3rd time. If they does not do a big breakdown soon a sharp up move is possible.
  • Descending triangles are known to break below favouring bears Lets see how this one goes.
  • First chart shows a negative candle at the top of the range and after that there was not a single day which closed above 5 day high EMA. Most of the action shifted to 5 day low ema giving chance to sell on rise.
  • Next chart shows price closing below 20 DMA. Shortly if this down move is not stopped price will have an encounter with 50 DMA.
  • The best trades are done when two or more set ups come together. Look towards the left side corner of the chart A HAMMER ON THE 50 DMA which is an easy long to take with a small stop loss.
  • We had a similar set up in nifty futures intraday chart. A Trend  line and the 50 hour moving average came together to pull the index down.
  • CLICK HERE FOR NIFTY FUTURES CHART

October 28, 2010

  • EURUSD daily chart with 20 DMA.
  • Pair has crossed above 20 DMA and is now moving towards the top of the triangle pattern.
  • Currency pair may find resistance near the top of the triangle.
  • Microsoft daily line chart with 200 DMA.
  • Stock will soon have an encounter with its 200 DMA.
  • Stock is approaching its resistance zone of 26.28 - 26.90. 
  • 200 DMA is just above this resistance zone. We will know soon if the stock is going to break above into the bulls zone above 200 DMA or remain in the bear zone below 200 DMA.
  • TRIANGLE OF DOW JONES
CHART-II
  • Dow Jones takes support near the support line of the triangle.
  • Price is approaching the apex of the pattern so we can expect a breakout soon.
CHART-I
  • Dow Jones Hour chart with support and resistance lines.
  • Chart is showing a triangle formation.
  • Price approaching the bottom of the triangle. If price gets support here an up move is possible.
  • Breakdown from the triangle will favour bears and may take price below 11000.
  • If price gets support up move can last at least till 11140 were price may find resistance.

  • SPX Hour chart trading in a channel.
  • Index was moving in favour of the bulls but price has been dragged down toward the bottom of the channel. 
  • This may be an attempt to shake out the weak bulls and then another up move may happen from here. 
  • Unless the bottom trend line is broken bulls need not worry.
  • USDJPY TAKING A U TURN
  • USD/JPY after making a good come back seems to be going down again.
  • 80.82 is an important support.
  • Breaking 80.82 means revisiting the lows again.
DAILY CHART
  • Dragonfly Doji in dow jones Futures chart.
  • The appearance of this candle shows the strength of buyers and the candle shows the momentum of price. So this pattern can push the price higher to an extent wherever they occur. The success rate of this pattern is quite high. 
  • The shadow at the top is acceptable if it is small. The perfect dragonfly doji does not have the shadow at the top.
  • S&P 500 four hour chart with the pull back from 1167 area which started yesterday.
  • The pull back seems to be gaining momentum. 
  • If ES crosses 1188 it will test 1192 were it may find resistance.
  • DOW JONES CHART WITH 50 AND 200 HOUR MOVING AVERAGE

  • Daily chart of nifty futures showing a clear top for the current up move.
  • 5937 is the next important support for nifty futures.
CHART-II
  • 50 Hour moving average and the trend line joined together to pull NF down. 
CHART-I
  • Hour chart with trend line and the 50 hour moving average.
  • The current hour is resisted by both the moving average and the trend line.
  • So if nifty manages to break above it will gather good momentum.
  • But possibilities are NF may face resistance here.
  • Nifty futures hour chart with possible lines that could resist and support the progress of the index.
  • Two lines of resistances are drawn NF is finding it tough to cross the first one. If it spends more time without breaking above it NF may come down to 6030 levels or even to the bottom support line. 
  • Break of the first resistance may trigger a rally towards the major resistance line drawn here.
  • Break of support line will be negative and if 6000 breaks we may see an extended correction.
  • Nifty Fib levels showing the resistance at 23.6%
  • 2nd chart shows a range of 6000 - 6042
  • 6042 is near the 23.6% fib level area. So if nifty futures breaks above 6042 it can move till the next area of 38.6% level.
  • Remaining in the range breaking the bottom level can extend this correction.
  • Bank nifty is near its support level of 12037 - 120368.
  • Index is also showing a consolidation triangle pattern.
  • So price should give good direction soon.
  • Nifty has closes well below 20 sma and the 5 day low ema showing weakness.
  • Most of the recent closes below 5 day low ema has been bought by the bulls so we may see that happen again.
  • Daily chart is also showing a triangle shaped consolidation which may give good direction
  • NIFTY FUTURES SUPPORT LEVELS

DAILY CHART
HOUR CHART
  • Daily chart made a good comeback today from the low of the day which was at 1171.70 to close above 1182. 
  • Intraday dip below 10 DMA did not sustain. Bulls showed a hammer candle which is a bullish reversal pattern when comes at the bottom of a trend. This candle may not be of much relevance here but shows the attempt of bulls to keep the price above crucial levels.
  • One look at the hour chart shows a channel formation with today's low touching the support line and reversing probably towards the upper end of the channel or at least towards the middle of the channel.
  • CLICK HERE TO SEE HOW DOW JONES REVERSED TODAY.
  • Break of 1179.52 eventually led to the break of the resistance line.
  • Price has made a close above the resistance line which can lead to a continuation of this up move tomorrow.

CHART-I
  • S&P 500 is trading below the trend line in 15 minutes chart.
  • Strength can be seen only if price breaks and trades above the trend line.
  • Today Price is showing a range of 1171-70 - 1179.52.
  • Violation of either of these numbers can give good direction.
  • Break of 1179.52 may find resistance at the trend line.

October 27, 2010

CHART-II
  • Dow Jones reverses as expected from the yellow box marked below.

CHART-I
  • Dow Jones Hour chart with 50 and 200 Hour moving averages.
  • The dip below 50 hour has not yet reached 200 hour moving average. 
  • So going by the past price action we should see a rally towards the 50 hour moving average from here. 
  • Breaking below 11000 will be negative.
  • S&P 500 BELOW 50 HOUR MOVING AVERAGE

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.

Followers

Blog Archive

Powered by Blogger.

About Me

My photo