June 12, 2010

WEEKLY CHART

WEEKLY CHART

  • The first chart shows dow jones moving in an upward moving channel.
  • It has taken support at the lower trend line of the channel and will try to remain in the channel and moving up.
  • Next chart shows a rising wedge in weekly chart breaking down which can have serious down side targets for dow jones.
  • But right now a rally towards the break down point of this raising wedge is going on. Which can end any time and the correction for this pattern can be huge.
  • Third one is another bull chart shows a triangle break out. If sustains above fridays high 10235 it can move to 10315-10325 initially.
  • Another important thing to remember is the 200 DAY Simple moving average in daily chart comes around 10310 so this area needs to be watched for reaction as well.
  • SP 500 EOD ANALYSIS
  • RUSSELL 2000 INDEX EOD ANALYSIS
  • POWERSHARES QQQ TRUST SERIES I WEEKLY ANALYSIS
DAILY CHART
DAILY CHART
DAILY CHART
  • Russell 2000 First chart shows positive divergence in MACD.
  • Since the divergence is in daily chart it is very positive for the index.
  • Second chart shows a falling wedge pattern. Any up move from here is possible on the break of the upper boundary.
  • Third chart shows price closing above 10 day moving average. But not able to go above 20 day moving average.
  • So any up move is possible only on a firm trade above 650. A daily close above 650 will give a target of 667-670.
  • SP 500 EOD ANALYSIS
  • POWERSHARES QQQ TRUST SERIES I WEEKLY ANALYSIS
  • DOW JONES WEEKLY ANALYSIS
SP 500 DAILY CHART
SP 500-WEEKLY CHART

DAILY CHART
DAILY CHART - LINE

  • Dow jones closed above its 10 day and 20 day SMA
  • But it has some more distance to go for the 200 day moving average.
  • The falling wedge shown here in line chart has been quite effective.
  • The fibonacci level of 23.6 has been conquered. Now dow is moving towards the 38.2 retracement level.
  • The raising wedge break out was a false one.
  • The delay in the expected down move suggested something was wrong.
  • The flag and the pole did it for the bulls. At least till now
  • Dow jones has formed a flag and pole kind of pattern.
  • The exact rules of flag and poles was not followed while drawing this one.
  • But i feel this one can resolve this consolidation.

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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