June 21, 2010


  • Eur/usd pair has broken the upward moving channle it was trading in.
  • I was expecting resistance to come around 1.26 or near the ichimoku cloud. But the resistance has come even before that.
  • SP 500 is not able to cross the 50% fib retracement level.
  • Any upside targets are possible only on a successful close above the 50% level.
  • SP 500 is not looking as strong as Dow which has managed to gap up above its 50% retracement level.   
  • Dow jones had no problem in crossing the 50% fibs.
  • It made a gap up above the crucial level. 
  • Now this 50% retracement level should give it good support. 
  • If dow closes above this retracement number it will be very positive news for the bulls.
  • And under normal circumstance the 61.8% retracement should be the next target or the next resistance. I should say target because nothing seems to stop the market for the last two weeks. 

  • Dow jones is trying to go above the ichimoku cloude.
  • In daily chart if an index or stock trades above the cloud it is considered to be very bullish sign.
  • So if dow jones closes above the cloude today it may stretch this rally to new high's.
  • Eur/usd Hour chart is moving up in a channel.
  • The ichimoku cloud resistance is at 1.26.
  • But it seems to face resistance even before that. 
  • Right now trading near the bottom of the channel.
UPDATED CHART
DOW JONES BULL FLAG
  • Dow jones has formed a bull flag in hourly chart.
  • Break out can give close to 90 points.

China is all set to be flexible on yuan's exchange rate. And this traders seems to be getting into risky assets because of this move. On monday the Yuvan rose to a 21 month high. The u.s treasuries fell on this news.

Asian currency's and stocks were trading higher on the news. Cude rose 2 percent mainly because this move may lead to china consuming more oil and more petroleum imports into china. And one main thing is this will ease some political tension with the west which will give traders some more confidence to invest in riskier assets.
MARKETS CURRENT CHANGE IN PERCENTAGE

UK 100

5308

1.11%

FRANCE 40

3748

1.67%

GERMANY 30

6307

1.46%

JAPAN NI225

10238

2.43%

HANG SEN 40

20912

3.08%

  • Nifty hour chart shows the break out of nifty above the channel.
  • And it looks like it will close above the channel.
  • If world markets trade positive we could see 5400 in two days.
  • The above chart shows nifty daily line chart.
  • It shows an upside break out from a wedge pattern.
  • So today's closing price is very important.
  • Bulls would need a close outside the pattern on the upside. While the bears may try to pull it back ito the pattern.

  • Nifty is trying for a V shaped recovery of its fall from 5399.
  • Currently we are at the 78.6% retracement level.
  • I feel if nifty  closes above 80% retracement level should take nifty above 5400.
  • But till then 78.6% may act as resistance level.

  • The first chart shows that the 50 day moving average is waiting to cross below the 200 day moving average. The cross known as the death cross.
  • This will be a negative event for the stock if it happens.
  • The immediate resistance for the stock seems to be at 68 to 70.
  • If the death cross happens one can wait for these levels to come or a retracement back to the 200 day moving average.
  • Wait for the correct entry. If it does not come don't trade. Smart traders always trade less. They wait for the correct entry. If they don't get that entry they look at other opportunities. And always remember market always gives you another good opportunity.
  • Euro has been moving up strongly.
  • Right now trading in an upward moving channel.
  • One can hold long as long as the channel holds.
  • The pair will find resistance around 1.26. This area being the previous resistance level and the daily ichimoku cloud is placed there too.
  • So for more upside targets the pair has to trade strong and break this resistance.

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.

Followers

Blog Archive

Powered by Blogger.

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