July 6, 2010


  • Dow futures made a smart recovery from 9500 to 9700 levels.
  • Now it has given up most of its gains.
  • It has retraced to almost 61.8% level. The index may halt there for some time and if it does not get support may break that too.

  • I have shown the fib ratios for the current fall in dow jones
  • The recent high was 10594 and it made a low of 9614
  • See where the index found resistance. Near 23.6% retrace level of the current fall.
  • More upsides possible only on breaking this level
DOW FUTURES 1 HOUR CHART


DOW FUTURES 4 HOUR CHART
  • The first chart shows the recovery of dow futures from 9500 levels to 9700
  • The hourly chart is trading in a raising channel.
  • The second chart shows the effect fo positive divergence in dow futures chart started forming few days back.
  • EUR/USD is trading in a range of 1.24 to 1.26 click here to see the chart
UPDATED CHART WITH BROKEN RANGE

  • EUR/USD may trade in the range i have shown above.
  • An hourly close above 1.26 can give 1.28. a close below 1.24 can give similar results on the down side as well.
  • Since the pair has made an upside break out recently the chances on breaking out on the upside seems to be more. But before doing that it may test the bottom of the range.

UPDATED CHART
  • Nifty futures breaks its short term resistance.
  • staying above the resistance line will be positive for nifty futures.

  • Nifty futures chart shown in 30 minutes time frame with resistance line.
  • The line resistance has been quite strong and the index is not able to trade above it.
  • A Break out with good volumes should take nifty futures near 5280.
NIFTY DAILY WITH MACD 
NIFTY DAILY CHART WITH TREND LINE
  • The first chart showing top formations of recent times and the current price actions which i believe has formed the top and is waiting to fall.
  • Just like the previous two occasions the MACD gives a sell and in recent times in daily charts this indicator has been working well.
  • An important trend line in daily chart has been violated but there was no follow up action.and the charts are also showing a broadening formation too. 
  • MACD can give a whipsaw so any daily close near the high of the current top should be a warning for the bears so keep stop loss accordingly. 

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