July 14, 2010

  • If dow jones daily chart with Fibonacci retrace levels for the fall from 11258 to 9643
  • If Dow Jones decides to close above its 200 DMA, I feel there is just one big hurdle before it reaches 10600 that is the 50% retrace level of its fall from 11258.
  • The above scenario plays out only if index closes above its 200 DMA convincingly and on closing basis. 
  • And in doing so the index has to avoid the negative divergence that has developed.
  • DOW JONES FUTURES WITH HIDDEN NEGATIVE DIVERGENCE
UPDATED CHART
  • THE SUPPORT LINE BREAKS


  • Nifty 15 minutes chart with support and resistance lines
  • Break out on the upside means continuation of the larger trend.

  • Nifty fills the morning gap.
  • The index is trading well below yesterday's closing prise.
  • Bulls has to take care
UPDATED CHART
  • GAP IS BEING FILLED. 
  • WILL THE INDEX RAISE AGAIN AS IT DID YESTERDAY?

  • Nifty hour chart with the GAP up.
  • The gap has not been tested yet. Look how the previous gap was filled and then the index decides to move up. The previous gap filling was mainly news based action
  • Nifty futures showing break out above recent high. and the high of march.
  • The prices have moved up. But the volume sticks are not above average. they are still below the trend line showed in the indicator window.
  • But price is not showing any weakness. So one can remain long till 5350(nifty spot) breaks on closing basis.
  • NIFTY DAILY AND WEEKLY VIEW
NIFTY WEEKLY CHART
  • Nifty daily chart is showing a possible raising wedge.
  • Nifty is still trading above 5 day EMA. 20 SMA and all major moving averages.
  • Nifty weekly is showing room till 5500+ that is the space till the channel top if the trend line holds.
  • If the trend line breaks one can start accumulating shorts.

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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