June 29, 2010

HOUR CHART OF S&P 500
CLICK TO ENLARGE THE CHART
  • When price deviates from an important moving average it tries to catch up with the moving average either with a reversal or with a sideways correction.
  • Especially when the move down or move up is very swift the opposite move to catch up with the moving average will happen with a reversal. 
  • This is not a thumb rule but has seen it happen many times in charts. 
CLICK AND ENLARGE THE CHART TO SEE THE LEVELS CLEARLY
  • I have plotted the Moving Average Oscillator here with the 4 hour chart of Dow Futures
  • It  shown two negative divergences that has happened in the same time frame.
  • At present it is developing a positive divergence. Before taking a trade please note that all divergences should have price confirmation
  • Dow Jones is moving away from the 50 week moving average. If the week closes at these levels or lower than these then surely going down to sub 9000 levels.
  • We can clearly see a rising wedge in this weekly chart so according to this pattern Dow should go down much lower than 9000 levels.
  • But there is a crucial support between 9700 and 9800 let's see if that holds. Bulls will be hoping for that but when a bear market sets in these number just don't work.
  • The triangle that formed yesterday in thirty minutes chart gave a gap down opening today.
  • Mainly because of the Eur/Usd channel break.
  • EUR/USD Hourly channel update

DOW JONES FUTURES

S&P 500 FUTURES

  • Eur/Usd Channel breaks and the pair is gaining downward momentum.
  • Look at the result below European markets are down more than 2%
WORLD MARKETS UPDATE
MARKETS CURRENT CHANGE IN PERCENTAGE

UK 100

4966

-2.08%

FRANCE 40

3477

-2.80%

GERMANY 30

6016

-2.30%

JAPAN NI225

9571

-1.27%

HANG SEN 40

20210

-2.49%


WEEKLY CHART

DAILY CHART

DAILY CHART WITH FIBS

30 MINUTES CHART TRIANGLE

  • 30 Minutes chart is showing a triangle which gave a false break out on the upside today.
  • Daily chart fibonacci levels for the rise from 9757 to 10594 has retraced till its 61.8% level. 
  • Daily chart is trading well below its 50 day and 200 day moving averages. And as each day passes by the death cross possibility is coming closer and closer because 50 day is nearing 200 day moving average, The cross of 50 day below 200 day moving average will confirm the death cross, which is a very bearish event.
  • The weekly chart is showing another day closing below the 50 week moving average.
  • Nifty Hour chart with a violated channel.
  • Stochastic has come to the oversold region and has given a buy signal.
  • Will that be enough to take the market higher?
  • I think if it end like this tomorrow should be a gap up or gap down scenario.
  • Nifty futures 15 minutes channel with broken channel.
NIFTY FUTURES HOURLY CHANNEL

  • Nifty Futures hour chart channel breaks
  • If it closes below the channel it will be negative for the index.
  • Wait for the candle to close before taking any decision. It may get back into the channel as well.
HOURLY CHART
  • Eur/Usd has broken the channel it was trading in
  • As there is good correlation between equity markets and eur/usd pair these day's this event will be negative for the financial markets.
  • If this does not recover before U.S markets opens then a gap down is for sure in dow jones.
UPDATED CHART
  • NIFTY is back in to the channel.
  • If 5300 holds there is a possibility of an inverse head and shoulder pattern
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CLICK THE CHART TO ENLARGE
  • Nifty futures hourly chart is shown above. The price it seems has broken above the channel but it has to stay there for bullishness to continue. 
  • The opening candle for today would be very important. If it trades and closes above the channel that would be positive for nifty.
  • If it comes back into the channel that would be negative.
  • For a safe entry one shall wait for the first One hour to get a clear direction.
  • The U.S Markets and the EUR/USD was looking weak overnight. But nifty seems to be looking better than those markets.
30 MINUTES CHART
DAILY CHART

WEEKLY CHART

  • The triangle in 30 minutes shows a break down.
  • S&P 500 is looking weaker than DOW JONES. If the death cross is about to happen it will happen first in S&P 500. As the 50 day is nearing the 200 day moving average.
  • And the weekly chart shows that the price has to close above the 50 week moving average for bullishness to comeback.during this week. 

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