June 23, 2010

  • Russell 2000 hour chart with ichimoku cloud.
  • See how the dragon fly doji has formed at the base of the cloud.
  • This should be positive for the index.
  • But the index is trading below the 50 hour sma. So that will act as a resistance.
DAILY CHART
HOUR CHART

  • Eur/usd daily chart and hour chart shown with ichimoku cloud.
  • Both the time frames showing down trend according to the cloud.
  • In daily chart the pair has been trading under the cloud since it went down below 1.47
  • In hour chart the pair was trading above the cloud when the pair made a recovery form 1.19 areas but again its trading below the cloud in hour chart now.
  • Now the pair is approaching 50 hour sma and the cloud in hour chart.
DAILY CHART
HOURLY CHART


  • Apple hour and daily chart shown here
  • daily chart shown with bearish engulfing formed on monday.
  • Now in hour chart price is nearing the 50 Hour SMA.
  • It can do two things. First is 50 hour sma giving support for a small rally.
  • My personal view is a break of the 50 hour sma mainly due to the bearish engulfing formed on the daily chart.
  • An hourly close below 269 and 50 hour SMA will be negative for the short term.
DAILY CHART
HOUR CHART


  • Dow Jones Trading around 10260 an important support area on closing basis.
  • The hour chart seems to be getting some support from the ichimoku cloud.
  • And hour also shows a break down from a head and shoulders pattern.
  • So the breaking point will now act as a resistance area when even Dow reaches there.

  • SP500 hour chart shown above. The price is falling through the cloud.
  • If the price falls below the cloud then cloud will act as resistance.
  • lets see if the cloud give support from the current levels.

Us Futures are signalling a positive start after the sell off yesterday. European markets are trading with a negative bias for the second day in a row. Main reason for the worry is the weak U.S. housing data which questines the global economic growth. 

The federal reserve will release a statement after the two day meeting on policy, it is expected to keep the interest rate near zero for an extended perieod of time. They have to consider the situation in europe while deciding on policy because the debt worries of Europe will have negative impact. The financial markets may move in a sideways fashion till the statement is released.

But The positive sentiments that we saw two day's back due to chinese currency situation was completely reversed because of the weak housing data from united states.

MARKETS

CURRENT
LEVEL

CHANGE IN PERCENTAGE

UK 100

5192

-0.50%

France 40

3680

-0.68%

Germany 30

6256

-0.18%

JapanNI225

9923

-1.87%

Hang Sen 40

20856

+0.18%

The eur/usd pair is also trading in a sideways fashion for the last two days. The reversal from the lower levels to 1.24 seems to have stopped. And it seems the index is waiting for clues from Europe and U.S to emerge.


CLICK ON THE CHARTS TO ENLARGE
HALF HOUR TIME FRAME
DAILY TIME FRAME

  • EUR/USD has given a break out of a triangle in half hour time frame
  • But the sustainability of the breakout is not certain as the trend in daily chart is down.
  • This can be a valid break out only if it manages to close above the ichimoku cloud.
CLICK THE CHART TO ENLARGE
  • Above is a thirty minutes chart of NIFTY SPOT.
  • Nifty has violated the channel.
  • Now there is an important support line and closing below this line will be negative 
  • If the line gives support nifty should move up.
CLICK THE CHART TO ENLARGE
  • Nifty futures 30 minutes chart with ichimoku cloud.
  • The index is trading close to the cloud. The price has not gone below the cloud for quite some time now.
  • So i believe the cloud will give support for the index here.

  • Nifty's daily candle yesterday ended in red showing some weakness.
  • But one look at the 5 DAY high ema will give the bulls confidence yesterday although a negative day still managed to close above the high ema.
  • Now as nifty is trading close to the recent high's one should expect some correction. Global markets mostly ended in red yesterday.
  • Dow Jones closed below its 200 DMA yesterday after holding on to it for 5 days. So if it does not come above the 200 DMA tonight one can expect good correction in US markets. Nifty may not look as weak as Dow Jones but since Dow is the leading indicator for world markets if it goes down it will be negative to range bound for nifty. 
  • Dow jones end of day analysis






  • Dow Jones has clearly broken the raising channel it formed in hour chart.
  • The index has closes below its 200 day moving average. 
  • The 3rd chart shows the possible retracement levels of this rise from 9700 regions. right now it is trading near the 38.2% level.
  • See how effective the bearish engulfing pattern is especially when it occurs in daily chart. 
  • One more important thing to notice is its place of occurrence, if it occurs at the top of the trend or at the top of a range it will work perfectly.
  • click here to see yesterday's closing bell analysis were bearish engulfing was shown

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