- SP 500 has given another bullish formation in 5 minutes this time.
- Bullish pennant has given a break out.
- Although the pennant is not a perfect one. This will be positive for the bulls. As the break out will help the triangle break out in the larger time frame.
June 3, 2010
- The fight between bulls and bears are clearly visible in the charts.
- Bulls trying to keep the triangle intact
- Bears want the rising wedge to break down the bottom trend line.
- Lets see who wins at last. My personal view is that the triangle will win at last.
- Caution i may go wrong so have stop loss.
- Dow jones has resistance around 10350 for today.
- The resistance line should be broken for any upside targets to unfold from here.
- If the index starts to trade above the 20 day SMA it should cross the resistance without any problems
- As i have shown in the previous post of microsoft, The stock has good support at 24
- Now it has taken support at 24 and it is now targetting it's 20 day moving average.
- If MACD gives a buy signal the stock may go above its 20 day moving average.
- So a buy in this stock is advised with a stop loss of 24.
- Hang seng index having broken a major trend line is trading above its 20 day moving average.
- The index may move up till it's 50 day moving average.
- So the strength in asian markets like hang seng may help nifty continue its upward journey.
- Nifty Fibonacci levels in hourly chart with extension target of 5180.
- If nifty manages to close above the resistance line mentioned in the chart. The target of 5180 is possible.
- Again another Fibonacci Magic look were the extension target is mentioned at the triple top area.
- Dow Jones has given a triangle break out. If this one is not a false break out the target is more than 10700.
- But for now The channel break out is were we have to concentrate. This is the first time a bullish candle has closed outside the channel in 32 days .
- The 20 day SMA is not captured yet. A successful close above this moving average.
- The 20 day SMA and 5 day EMA crossover has not yet done yet. MACD crossover is also not done yet.
- IF both the crossovers is done that can be confirmation of a successful triangle break out.
- SP 500 Index has closed on a positive note.
- This is the second attempt of reversal from this channel.
- First time it was failed and resistance was just below the 20 day moving average
- 2nd time the index has closed below 20 day SMA. But this time the reversal may happend
- If you are a moving average crossover trader, I have plotter the 5 day EMA and the 20 day SMA the crossover has not yet done. One can also combine the MACD crossover to make it a better entry. Both the crossovers are yet to happen.
- RUSSELL 2000 INDEX HAS GIVEN A BREAK OUT.
- NOW BEFORE YOU JUMP TO GO LONG. KEEP STOP LOSS JUST BELOW THE BREAK OUT POINT.
- BECAUSE I SAW SOME PATTERNS IN ASIAN MARKETS WHICH GAVE FALSE BREAK OUTS.
- THIS BREAK OUT CAN TARGET 670.
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