- Dow Jones is forming a falling wedge in its daily line chart.
- Falling Wedge is a bullish pattern.
- There are two possibilities
- 1st one a reversal from 9800 levels.
- 2nd one a reversal after a false break down of the bottom trend line below 9800.
- Falling wedge being a bullish pattern and is well formed in the daily chart i am expecting a reversal.
June 5, 2010
- NIFTY is trading above its 20 day moving average. But need some more candles to form above the 20 day moving average for bullishness to continue.
- Nifty hour line chart is forming a rising wedge pattern. If nifty correct from this pattern on monday we have support around 5050.
- This move is a retracement of the fall from 5399 to 4786. And we are trading above the 50% retracement level. If we don't sustain above 50% levels nifty may go back and retest 38.2% level at 5020.
- The most important chart is the hourly line chart showing a rising wedge. Dow jones broke down from a similar pattern over night.
- Dow broke the rising wedge on opening bell itself and went below some critical support levels CLICK HERE TO SEE THE DOW JONES CHART
- Dow went below 10100 in the opening bell itself. which warned what's about to come.
- The opening bell took dow outside the rising wedge that gave the short traders good profits.
- The down trending channel is still intact. Exactly from the top of the channel is were dow came down.
- Dow jones weekly channel consistantly closed below 5 day EMA which showed no strength returning.
- The last chart shows what was about to come. The negative divergance even before that near 1000 point move a day the negative divergance was clearly visible in the hourly chart.
- SP 500 was not able to close outside the channel
- got resisted at the top of the channel.
- See how 20 day moving average is acting as resistance, for the second time the index reacted when it came across the 20 day MA.
- 1040 is the las hope for the bulls.
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