June 2, 2010

  • SP 500 IS APPROACHING A RESISTANCE AREA
  • FOR ANY MORE UPSIDE TARGETS THE INDEX HAS TO BREAK OUT ABOVE THIS TREND LINE.
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  • EUR VS USD HAS FORMED A DESCENDING TRIANGLE.
  • THE TRIANGLE HAS GIVEN A FALSE BREAK DOWN ONCE. SO THE NEXT BREAK DOWN OR BREAK OUT MAY GIVE THE CORRECT RESULT FOR THIS PATTERN.
  • I AM EXPECTING A BREAK OUT ON THE UPSIDE SINCE WE HAD THE FALSE MOVE ON THE DOWN SIDE.
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UPDATED CHART - II
TRIANGLE UPDATED


  • The triangle is marked in the 2 hours time fram
  • Expected to give large move on the upside.
  • Triangles are known to give false break out's. This one may give a false break out on the down side.
  • 10000 should be held this week. and a break out above 10200 during next week will give target of 10400 and 10600.
  • caution: Take long trade only above 10200.

  • SP 500s MOVING DOWN IN A CHANNEL.
  • 1060 SHOULD BE GOOD SUPPORT ZONE.
  • IF THIS IS HELD INDEX SHOULD DO AN UPSIDE BREAK OUT WITHIN THE NEXT 2 OR 3 DAYS.
  • IF 1055-1060 IS BROKEN THE INDEX WILL MOVE DOWN 1040.
THANK YOU

  • 5 day EMA and 20 day SMA crossover system is very effective when it combines with an MACD crossover.
  • MACD cannot be used alone. So combining it with the 5 day EMA and 20 day SMA is a nice way to avoid whipsaws.
  • If you see in the above chart There are two moving average crossovers displayed here. Both have given good profits. But in between those two crossovers there are two MACD crossovers. But the moving average crossover did not take place. So in this way we can avoid a whipsaw situation and enjoy big profits.
  • Coming back to russell 2000 index this one should close above 64 its key support area. Any close below it will take it around 61.
  • The index has MACD positive divergence. But the price is not able to trade above the 5 day EMA for more than 2 days consistently.
  • Still bears are in control but as long as 64 is not broken bulls have a chance in the near term.
thank you


  • There is positive divergence in MACD of EUR VS USD index.
  • Price has to confirm it by moving ahead of the above trend line for more upsides
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BEARISH FLAG WHICH TURNED OUT TO BE BULLISH
UPDATED CHART - I


  • The triangle gave a false break out.
  • Lets hope at least the bearish continuation pattern works well after break out.
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  • NIFTY Triangle formation in yahoo 5 days chart.
  • If it breaks above which i am expecting 5030 can be seen.
  • If the low around 4960 is taken out then nifty will plunge to 4920 levels.
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NIFTY WEEKLY CHARTS

  • NIFTY Weekly chart need some reversal from lower levels to save the bulls. 
  • The line chart set up will be affected seriously for the bulls if we close the week below yesterday's low.
  • We are in a make or break week
thank you
DOW DAILY WITH THE ICHI CLOUD

  • Dow is trading well below it's 20 day EMA in daily chart
  • We had a small up move because of the POSITIVE DIVERGENCE that i have marked in the chart.
  • As long as the index keeps to 10000 the positive divergence will show some more effect and upside targets are possible.
  • But below 10000 it's trouble for the bulls
  • I have also shown the ichi cloud and it says "when we are below the cloud we are in bear market". Since we broke below the cloud there is a chance for a retracement. But will it be effective enough to go above the cloud to enter a new bull market? only time will tell.
thank you

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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My Favourite Quote

"All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis."
—Jesse Livermore