July 7, 2010

  • Now S&P 500 is trading above 1046 the earlier mentioned resistance. 
  • The index is also trading above its 50 hour moving average.
  • The most important thing for the bulls is to sustain above these points till end of day.
  • If they fail to hold on to 1046 and a place above 50 hour moving average bears will be back to sell this rally.
  • 1046 WILL BE HARD TO BREAK ON CLOSING BASIS CLICK HERE TO SEE THE CHART
  • S&P 500 chart shown in hourly time frame.
  • 1046 was earlier acted as support since it was decisively broken this area will act as resistance.
  • So unless a strong close happens above 1046 this reversal attempt may not sustain too long.
  • CLICK HERE TO SEE THE 15 MINUTES CHART WHICH GAVE GOOD UPWARD MOMENTUM
UPDATED CHART
  • An important support and resistance line for SPX
  • A Break and close below 1018-1020 will bring another leg down which may give new lows.
  • If the index gets support at 1020 a small bounce can be expected
  • Dow Jones futures chart showing recovery of the index from 61.8% retrace level.
  • 9600-9620 are is giving good support till now for the index.
  • The 15 minutes chart is looking bearish
  • It has broken down from a head and shoulders pattern not a perfect one but still a bearish looking chart.
  • If closes below 5250 it can target 5200 in nifty futures
NIFTY FUTURES HOUR CHART
  • Nifty futures breaks important support at 5250 in one hour chart
  • There is one more important support level at around 5235-5240 i have shown it in the above chart.
  • If  NF closes below this level it should be negative for the short term.
  • If it gives support a small rally possible
  • CLICK HERE TO SEE INTRADAY AND 5 DAY LIVE CHART FOR NIFTY
UPDATED CHART WITH NEW SUPPORT LINE
HOLDING THAT IS CRUCIAL FOR BULLS
  • Yesterday nifty futures broke above an important trend line at around 5265 and gave good points for the bulls.
  • Now it is testing that line again. So the basic says past resistance should act as support after it breaks above the resistance.
  • If that happens a small rally possible. Holding 5250 in nifty futures is a must.
  • CLICK HERE TO SEE INTRADAY AND 5 DAY LIVE CHART FOR NIFTY
  • The 50 DMA crossing below 200 DMA will happen soon resulting in DEATH CROSS.
  • The chart shows 1 death cross and 1 golden cross that happened in the stock in the space of 2 years. Both of it giving good gains for bulls and bears.
  • Now it is the time for the bears to come in the DEATH CROSS may not give its results right away but when it is confirmed all rally's will be sold off near 50 or 200 DMA.
  • CLICK HERE TO SEE INTRADAY AND 5 DAY LIVE CHART FOR HINDALCO INDUSTRIES
DAILY CHART
DAILY CHART FLAG FORMATION
  • Nifty made a good closing yesterday after breaking the resistance.
  • The index is also showing a flag formation which points to bullishness. 
  • But the major hurdle for the index will be 5310-5330 on closing basis. closing above this will be very positive for nifty to go above 5400.
  • Break below 5225 will invalidate all bullish moves and on a close below 5225 one can go short.
  • CLICK HERE TO SEE HOW NIFTY FUTURES BROKE ITS RESISTANCE LINE YESTERDAY
  • Positive divergence is seen in MACD and the index might give a small bounce from this developing positive divergence.
  • The trend line drawn below the price should hold for this one to work. If the index closes below that line the divergence will vanish in no time.

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