August 2, 2010

UPDATED CHART
  • The index is testing the resistance line of the rising wedge.
  • Daily candle should break out and close above the resistance line for bullishness to continue.
  • Rising wedge of dow jones futures in 4 hour chart.
  • The pattern is approaching its apex. It will give a direction when the range 10360-10600 breaks. 
  • A good move on either direction is possible. But since it is a rising wedge a break out of 10600 should be traded with caution.
  • Break of 10360 should give a good selling opportunity for the bears. 

  • Reliance industries has broken down from the ascending triangle in daily chart.
  • The break down is targeting the 930-950 Level. BUT the 200 DMA  and the weekly support line may limit the fall to 990 levels.
  • As you can see from the second chart the stock has not been pulling away too much from the 200 DMA recently. 
  • But if the stock  breaks 985-990 level next week means pulling away too much from the 200 DMA and breaking important support lines in both weekly and daily charts. This should make the bulls worried and a larger correction may follow.
  • CLICK HERE TO SEE HOW THE ASCENDING TRIANGLE FORMED IN RELIANCE
  • BANK NIFTY TECHNICAL ANALYSIS
  • NIFTY WEEKEND ANALYSIS

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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