July 13, 2010

  • Dow Jones hits an important trend line in daily chart.
  • Look how the trend line combines with the 200 DMA to give a double resistance.
  • But the index is trading above both these points as of now. 
  • Closing above the trend line and the 200 DMA will make the bulls stronger and it is necessary for continuation of this rally.
  • Dow Jones is trading above 50 DMA and 50 week moving average right now.
  • The recent bull rally was resisted by the 50 DMA. But this time that did not happen. 
  • The only major hurdle before Dow Jones moving to 10600 is the 200 DMA. Will it be the 200 DMA that stops this rally?. We will know the answer soon.
  • DOW WITH FUTURES NEGATIVE DIVERGENCE
  • Dow Jones futures has been showing negative divergence for quite sometime.
  • But the price confirmation is not happening. 
  • So even if there is negative divergence untill the hour chart makes a lower high this market remains buy on dips.
UPDATED CHART
  • Finding resistance near recent high price level. Should close above it to show the complete strength of bulls.

  • Nifty spot hour chart trading near yesterday's high
  • Closing above yesterday's high on hourly basis will show the strength of the bulls.
UPDATED CHART
  • Nifty futures is trading near important support and resistance lines.
  • For more upsides the resistance line needs to be crossed and a close above that on hourly basis is a must.
  • But for now it is trading below the support line.
  • NIFTY SPOT DAILY CHART ANALYSIS
UPDATED CHART

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  • It seems we will get a good intraday direction today.
  • If it stays below the support line it is going to go down further.
  • Eur/Usd has formed a head and shoulders in hour chart.
  • Break down from the neck line will be bearish for the pair.
  • Will show its effect on equity markets if it goes down too much.
NIFTY DAILY CHART
  • Nifty is still trading above 5 day high ema.
  • The doji which i saw yesterday is not visible in chartnexus chart.
  • There is a possible raising wedge pattern developing will confirm in the coming days.
  • CNX IT BREAKS OUT
WEEKLY CHART
DAILY CHART

HALF HOUR CHART

  • The price was not allowed to go above the 50 week moving average today.
  • And another resistance in daily chart are the fib retrace level of 61.8% and if it crosses that the 50 day moving average is there.
  • A Triangle is developing in the in the 30 minutes time frame. One has to be careful because of these resistances the upside break out may end up as a false one. Keep appropriate stop loss for the long trades

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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"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