August 3, 2010

Broadening pattern of Dow Jones

  • 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 analysis after closing bell


  • 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 with trend line

  • 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 chart

  • 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.

Nifty daily chart analysis

  • 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 targets and support level

  • 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