August 3, 2010

  • A broadening pattern is forming in Dow Jones hourly chart.
  • Since it has come at the top of the trend it can be classified as a Broadening top formation.
  • DOW JONES END OF DAY ANALYSIS

  • Dow Jones Industrial Average closes up 208 points up or 1.99% Up
  • Dow Jones has breaks out and closed above 10600.
  • The second chart shows a trend line that may support the index on its way up.
  • Staying above 10700 it may target 10900 were the next resistances may come.
  • DOW JONES FUTURES TARGETS AND SUPPORT LEVELS
  • Nifty 15 minutes chart is supported by a trend line
  • Breaking the trend line means testing the support area of 5408.
  • For now the trend line and 5408 should hold the nifty above 5400 area.
  • Break of 5408 will lead to a large correction.
  • NIFTY DAILY CHART ANALYSIS
  • Nifty futures hourly triangle has given two whipsaw trades and now it is playing out the third one.
  • If NF falls below 5425 this will end up as a false break out. and the index will come into the triangle pattern.
  • It is better to take a positional trade when the larger range breaks out.
  • The classic resistance turning into support played out again.
  • So 5350 is going to be hard to break now. But 5477 should be taken out in the next 2 sessions for a stronger up move to follow.
  • DOW JONES ANALYSIS AFTER CLOSING BELL
  • Dow Jones has crossed 10600 which was a good resistance area for the index.
  • Today's closing is very important a successful close above 10600 is important for the bulls.
  • Immediate target for the index is 10715 and on a successful close above this level can give 10900.
  • Now If there is any dip from the current levels it should stop before 10380 levels. A breach of 10380 could be risky for the bulls.
  • So the positional stop loss can be kept at 10380 on closing basis.
  • RISING WEDGE OF DOW JONES FUTURES

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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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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