July 2, 2010


  • This is the daily chart of S&P 500 with 50 and 200 DMA's
  • The 50 day moving average is touching the 200 day moving average
  • This will add some more bearishness to the markets

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  • Dow Futures Hour chart is trading near its 50 hour moving average.
  • During the down trend these are the places to go short.
  • But there is a possible inverted head and shoulders pattern developing with neckline around 9730.
  • WORLD INDICES LIVE

  • EUR/USD pair daily chart is shown with ichimoku cloud.
  • And this is the second time the pair is looking to go above the cloud after its fall below the cloud at 1.47 region.
  • The first attempt ended in failure with the 50 DMA and the cloud stopping it from going above.
  • The pair in this attempt seems to have cleared some distance from the 50 DMA. And the patterns from which the pair is trying to reverse is also looking good. The only negative point was the volume which i showed in my earlier post CLICK HERE TO SEE VOLUME ANALYSIS OF EUR/USD.

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4 HOUR CHART
DAILY CHART
  • The first chart is the 4 hour chart of EUR/USD with volume.
  • If you notice there is no substantial increase in volume during break out.
  • And the in daily chart the price is still trading below the ichimoku cloud. 

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  • Nifty Futures 4 hour chart.
  • It is showing a bull flag
  • And it has given two false break outs.
  • It looks like it may break out again. If it fails again nifty will fall below 5225 and below 5200.
  • A Successful break out will fetch 5400.

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UPDATED CHART
  • 50 EMA has been giving good support in the 5 minutes chart
  • If it gives support again an up move possible.
  • If not the lower trend line will break and a correction will follow
  • Above i have shown nifty futures chart.
  • One can hold longs till the support line is broken.
  • The resistance line also has been tested many times. So a Break out with good volumes should take nifty to 5400
  • Nifty's last week had formed a grave stone Doji.
  • I failed to notice it last week itself. the lower shadow should not be there for grave stone doji But in this case it is very small.
  • So what is the result?. If we don't take out the high of that candle, that candle should be the top for us for quite some time to come.
  • ABAN has been moving up in daily chart having broken out of an inverted head and shoulders pattern in daily chart.
  • Now after moving up nearly 50 points from the neckline it is testing the 50 DMA.
  • Those who are holding long can confirm the strength of the up move if it makes a strong close above the 50 DMA this week
BULL FLAG

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