June 25, 2010

  • Dow Jones reversed from 61.80 retracement level.
  • And the upper down trend line is broken now.
  • Sustaining above this line will be positive for now. If close is above these levels we can see good upward momentum during next week
UPDATED CHART
  • Two minutes chart showing consolidation before a possible break out towards the upside.
  • Above 1078-1080 it will get to 1086.
  • 1086 will be the next resistance.

UPDATED CHART
  • Falling wedge in hour chart.
  • It is shown with a line chart so a break out and close above the down trending line is necessary for a confirmation.
  • At least a close above 1086 is necessary for the validity of the pattern.
  • A downside break out would invalidate the pattern

UPDATED CHART
  • Dow Jones like sp500 has a possible falling wedge pattern.
  • But it is close to a down side break out which will make it invalid.
  • but since it is a line chart we should wait for the closing.
  • If it closes inside the pattern there is a chance of an upside break out today.
CLICK ON THE CHART TO ENLARGE
  • SP 500 has formed a top in the hourly chart.
  • And it is trending down in the channel.
  • Unless the channel breaks and makes a strong close above 1086 levels the down trend will continue.

U.S. Index Futures were trading lower suggesting a lower opening for the major indices of wall street.

Asia and Europe were trading weak. European shares were also trading near two week low, And they are expecting some more bad news from the G20 Meeting. Japan's Nikkei fell 1.9 percent to close at low of the day suggesting more falls to come in the coming days.

Euro is struggling to cross 1.23 mark. for the last two trading days it has been trying to cross this mark but unable to make a good close above 1.23 mark, this is another negative news for U.S. Markets.

GLOBAL MARKETS UPDATE

MARKETS

CURRENT
LEVEL

CHANGE IN PERCENTAGE

UK 100

5089

-0.22%

France 40

3539

-0.45%

Germany 30

6086

-0.47%

JapanNI225

9373

-1.92%

Hang Sen 40

20690

-0.21%


  • EUR/USD has broken down from a head and shoulders and triangle pattern in hourly chart.
  • Both patterns seems to suggest some weakness going ahead.
  • But if these are false moves then we can expect some positives.
  • failing to close above 1.23 will be negative and that means slipping back to l.22 levels again.
  • Reliance chart looks like a top has been made for the short term.,
  • A daily close below 1046 would be negative and the stock then will slide to 1035, 1031 , 1022
  • And the stock is also approaching its 50 DMA  a close below this would trigger good correction.
UPDATED CHART
  • Nifty Hour chart with possible support at 5075-5080.
  • Break of this level could lead to a large correction.
NIFTY WEEK CHART
NIFTY DAILY CHART
NIFTY DAILY CHART


  • Nifty after many day's have closed below the 5 day high EMA. indicating a short term weakness.
  • Nifty is giving candlestick patterns like dojis indicating indecision among buyers and sellers.
  • I have added the weekly chart with trend lines which shows support at lower levels.



UPDATED CHART
  • S&P 500 is developing a triangle pattern in five minutes chart.
  • This might be a consolidation before going down again.
  • It is better to take a short trade from this pattern as the trend in larger time frame is down.
  • Any upside breakouts may end up as a false one.
  • Triangle in Dow Jones gave a good break down.
  • I had shown the same triangle in SP 500 earlier.
  • That one has given a smilar break down.

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