July 16, 2010

UPDATED CHART
  • RIGHT NOW TRADING BELOW THE SUPPORT LINE.
  • DAILY CANDLE CLOSE BELOW THIS LINE SHOULD GIVE GREAT JOY FOR THE BEARS.
  • Dow Jones Futures 4 hour chart
  • The index tried to go above 10360 area but faced resistance and came down.
  • Now any upside targets are possible only on a strong break of this level.
  • DOW JONES ANALYSIS AFTER CLOSING BELL
  • Nifty futures support line in daily chart.
  • Break and close below it will strengthen the bears.

UPDATED CHART

  • At present nifty is trading in a neutral area with daily trend up.
  • But closing above 5400 can give another push towards 5450.
  • And close below 5360-5350 will be the first warning for the up trend.
  • FLAG in 10 minutes chart.
  • This one is a bear flag but since it has come at a small time frame the failure rate is very high.
  • We had a similar bear flag yesterday in U.S Markets which broke on the upside
  • The resistance and support lines for SBI has been working well.
  • For SBI if the stock breaks out and closes above 2505 will give good upward momentum.
  • But as of yesterday the stock got resisted at the top, so may go into correction mode for some day's.
  • The trend line support also looks quite strong. As the stock has respected it so far a breach of the trend line could lead to a large correction.
  • BANK NIFTY ANALYSIS
  • Bank Nifty is showing a break out from resistance.
  • Now it has started to  retrace to the break down point.
  • Don't try to enter at higher levels. Have clear entry points like Break of yesterday's high during intraday for going long. If your entry signal does not come skip the trade.
  • STATE BANK OF INDIA TECHNICAL VIEW
NIFTY DAILY CHART
  • Nifty has a raising wedge in daily chart. And the price is respecting the trend lines till now.
  • The index is still trading above 20 day moving average. One negative factor is the closing below 5 day high ema. 
  • But it is still not a sell on rally because  price has remained above 5 day ema(close) and after 8th july price is yet to visit the 5 day low ema.
  • One more thing we should consider is the weekly candle with long upper shadow which will end up as a bearish candle if it closes like this. 
  • DOW JONES END OF DAY ANALYSIS
  • Dow Jones has made yet another close below 200 DMA.
  • Take a look at the first chart. The price hits the trend line and starts to Correct this has happened twice. May happen again.
  • S&P 500 TRIANGLE BREAKOUT
  • The triangle pattern in 10 minutes chart has given a good breakout.
  • Closing above 1099 would be very positive for the index

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