- Confirm this bull flag only on an upside break out and trading above 10050 firmly.
- Otherwise false break outs are possible
- Longs should be taken with caution stop loss 9980.
June 9, 2010
- SP 500 has to face big resistance if it has to move above 1095.
- Between 1085 and 1095 the down trending line will act as the first resistance.
- If it breaks above that then there is the 38.2% retracement fib level of the fall from 1175.
- So crossing this band is not going to be easy. Already it is struggling to cross the 23.6% retracement level.
DOW JONES BEARISH VIEW
VERY BEARISH VIEW
SLIGHTLY BULLISH VIEW
- As you can see from the above charts the long term for dow looks grim and bears should love to see the second chart.
- The first chart shows the bearish crossover of 20 SMA below 200 SMA. When the last time 20 SMA crossed above 200 SMA Dow was at 8400 levels and from there we went till 11000 levels. So this crossover is a very effective one.
- Then the second chart Its a big rising wedge in line chart. If this one is to show its true colors dow should fall more than 3000 thousand points. I am being conservative there actually it should fall more. Remember all this on a long term prospective.
- In the short term the only savior in the daily chart is the descending wedge. If this one works well bulls can show us 10400 back on screen.
- Nifty ended negative yesterday. But Some possible reversal patterns are still intact.
- Like the inverted head and shoulders pattern is very much possible as long as nifty stays above 4900.
- But on the contrary it is trading below the 20 day and 200 day moving average. And after many weeks the 20 day SMA is approaching the 200 day SMA for a bearish cross. If the cross does not happen this can give a good rally from here.
- We had a break down from a rising wedge in hourly chart. So nifty has to close above 5140 for bullishness to return
30 MINUTES CHART
- Dow jones Half hour chart is trying to reverse the down trend with a triangle break out.
- But the trend in the daily chart is still clearly down as you can see the price is still moving down in the top portion of the channel.
- The weekly chart is for me the most interesting one. 2 weeks from now dow will clearly decide which way it want's to go. So we can see large swings in the daily time frame that can give some good trades.