July 10, 2010

  • BP PLC is trading above its 20 day moving average.
  • It may rally till its 50 day moving average before finding resistance.
  • Immediate fibonacci resistances at 34.84 and 39.83
  • The daily chart closed above 20 DMA which is very positive. Now if it trades above 10210 with good volume it looks certain to reach the 50 DMA.
  • This rally is taking lesser time to go up making it a candidate for reversal.
  • But let's see how it reacts when it meets the 50 DMA.
  • The week chart has also ended on a positive note.
  • It closed around the 50 week moving average. And has some more distance to go before it meets the resisting trend line.
  • Coca Cola daily chart has been trading in a range from november 2009.
  • Right now it is trading at the top of the range.
  • Those who trade the range can use this opportunity to go short with a stop loss of 53.
  • Suzlon energy ltd is trading in a triangle.
  • Both daily and weekly chart is on the verge of a break out. The stock is trading with light volumes.
  • Look for an increase in volume and if it is buy volume the stock should close towards the high of the day for buying. and vice versa for selling.

  • The diamond formation in unitech weekly chart
  • Diamonds are usually considered as bearish patterns. But for me the break out depends up on how the price enters the diamond formation.
  • There is a weekly channel formation and the price is trading on a trend line within the channel. so this seems to suggest the current up move to continue till the trend line holds.
  • The volumes are also getting lower and increased volume during break out may help in finding the future direction.
  • Dow jones enters the resistance zone of 10200 to 10350
  • This is a price pivot zone so we should see a fight between bulls and bears resulting in a consolidation before break out or break down.


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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