June 14, 2010


  • Expecting to see some more red candles if the ascending trend line in the hourly chart is broken on the down side.
  • The chances of the index getting a support from this trend line cannot be ruled out as well.
  • So one can expect good action as the price converges between these two lines.
  • Lets wait for a break out on either side to take a safe trade.


  • There is a possibility of a double bottom formation in dow jones
  • I have shown it in the hour chart.
  • The two bottoms comes at 9759 and 9773 they are not exactly equal but roughly equal That is enough for the formation of a double bottom.
  • Caution it is only possible on a strong close above the red line with high volume.
  • OTHER POSSIBILITIES IN DOW JONES CLICK HERE


  • Dow jones made a smart move from its flag.
  • Will meet with resistance between 10320-10330
  • If trades above that it can go till 10350
  • SP 500 is approaching the resistance zone of 1095 to 1106.
  • A daily close above this area will be positive for the index.
  • If it does not break and close above this zone quickly a reversal from this zone is possible.
  • Above 1106 the index will also meet the 38.2% retracement of the fall from 1200 levels.


  1. Three charts of SPY first one shows a triangle like pattern breaking on the upside and closing above it indicating upward momentum
  2. But the second chart clearly shows that SPY is still in a range of 105 - 111.
  3. And any meaning full rally is possible on a strong close above 111.
  4. And the third chart is the hourly chart of SPY with 200 and 50 HOUR MOVING AVERAGES.
  5. This is one of my favorite setups. One can go long when the price closes above the 200 hour moving average. And if the cross of 50HOUR MA above the 200HOUR MA takes place one can get good profits.
  6. SP 500 EOD ANALYSIS
  7. POWERSHARES QQQ TRUST SERIES I WEEKLY ANALYSIS
  8. DOW JONES WEEKLY ANALYSIS
DAILY CHART
DAILY CHART LINE
  • The first chart shows the moving average situation of NASDAQ COMPOSITE in daily chart.
  • Unlike dow jones in nasdaq composite the 20 day moving average has stayed above the 200 day moving average.
  • And the price is also trading above its 10 day and 200 day SMA's. And on friday the index stopped just short of its 20 day SMA.
  • The 2nd chart shows a descending triangle kind of pattern were the price is trading close to a resistance trend line. Any upsides are possible only after the trend line breakout and a daily close above it. And it is similar to the falling wedge as well.
  • If an upside break out happens and the index closes above the trend lines the first target is 2327.
  • SP 500 EOD ANALYSIS
  • POWERSHARES QQQ TRUST SERIES I WEEKLY ANALYSIS
  • DOW JONES WEEKLY ANALYSIS
UPDATED CHART
  • Nifty 5 minutes chart with resistance at 5172
  • support at 5142
  • A raising wedge formation is happening in nifty.
  • A break out on the lower side may end up finding support at  5150 levels. So don't short at the time of break down. Wait for confirmation.
  • It may break on the upside as well. And that means the pattern is invalid. As raising wedge is a bearish pattern it should break on the down side.
DAILY CHART


  • Tata steel's Force index is showing good positive divergence.
  • And the daily line chart has broken its channel.
  • Now a break out and close above the 20 day moving average should give some momentum towards the upside for the the stock.
  • For resistance levels of TATA STEEL IN HOURLY CHART CLICK HERE.
BANK NIFTY WEEKLY CHART

  • After getting support from around 9140 bank nifty is moving up.
  • On friday as you can be seen from the first chart bank nifty has closed above its 10 day, 20 day and 200 day moving average.
  • Trading above 9455 will be positive and can lead to the next resistance level which are at 9510
  • And bank nifty is converging between an upper and lower trend line in the weekly chart this means it will break out soon. And the result will be big.  

Disclaimer

All the contents of niftychartsandpatterns are for educational purposes only and are not Investment Advice or recommendations offered to any person(s) with respect to the purchase or sale of the stocks / futures. Niftychartsandpatterns shall not be held responsible for the actions of individuals, parties, or corporations taken in response to the ideas, thoughts, concepts or information presented in this blog. Hence all the visitors are requested to apply their prudence and consult their financial or investment adviser before acting on any of the Ideas in this blog.

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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