June 8, 2010


  • This triangle Break out can give at least 100 points 
  • But remember triangles are known for their false break outs.

  • Dow jones pennant formation in 5 minutes chart
  • Upside break out can take it pass 9900. Stop loss 9840

  • Dow jones Trading in a descending triangle pattern.
  • Break out on either side with volume can push the index more than 100 points in the direction of the break out.

  • Dow jones is showing positive divergence in hourly chart.
  • So a dead cat bounce can be expected.

  • Dow jones broke the weekly trend line at 10690.
  • And now there is a horizontal line drawn in the chart the value is around 9770 Below 9770 the targets are 9600 and 9500.
  • If the horizontal line gives support a rally is possible in dow jones

  • Take a short trade if the trend line breaks and price falls below the horizontal line.


  • Nifty hour has broken a channel formation.
  • Next target is 4962.
  • It has to close above 5031 or come down to 4962

  • Nifty hour has broken a channel formation.
  • Next target is 4962.
  • It has to close above 5031 or come down to 4962

  • Nifty has resistance at 5080-5100 
  • This area is the break down area for the rising wedge break down.


  • DOW JONES Closing price is the lowest close for this year
  • The inverted head and shoulders pattern in nifty might save the bulls.
  • But in the bearish view we have a break down from a rising wedge targeting at least 4800.
  • crucial fibonacci levels are 5020 and 4930 that is the 38.2% retracement and 23.6% retracement which may give support

  • Dow jones has created a new low for this year.
  • There was a bearish flag pattern in Hourly chart. And it broke and closed near the low part of the day.
  • 9850 is broken we may head lower at around 9700

  • NASDAQ 100 index is showing a break down from a head and shoulders pattern.
  • Staying below 1800 the index may target 1750 at least


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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