August 12, 2010

  • Dow Jones index has closed the day down 264.42 points or -2.49%
  • Dow Jones index broke and closed below its 200 DMA after trading above it for almost 13 days.
  • It has broken an important trend line in daily chart.
  • It does not seems to stop there. Third chart is Dow Jones futures which seems to have fell off the cliff. Has not stopped selling yet. 10250 in futures index may give some support.
  • Nifty futures is showing a possible triangle formation in 5 minutes time frame.
  • The break out on either side can give at least 50 points.
  • Since it is a triangle it can give false breakouts before deciding its path.
  • NIFTY SPOT HOUR CHART WITH  FIBONACCI LEVELS
  • Nifty is trading near 50% retrace level of its fall from 5491
  • So any upside targets are possible only if nifty goes above 50% level.
  • above 50% level the next target is 5446.
  • Nifty futures has violated the channel in its daily line chart.
  • Now a daily close below 5390 will test 5350.
  • If 5350 breaks the next target comes at 5270
  • This trade depends on how nifty closes today. If nifty futures closes above 5390 levels the index will remain in the channel.
  • NIFTY TREND LINE BREAK TRADE
NIFTY FUTURES 4 HOUR CHART
  • Nifty may test the 5350 support region this week.
  • Nifty closed near the low of the day. The index has also closed below its 20 DAY SMA. It has also closed below 5 DAY H.EMA.
  • Looking at the global scenario nifty may get a gap down today. That means selling will continue. Break of 5350 and a weekly close below this region will be very bearish for the short term.
  • Nifty future chart is also indicating a test of 5350 region.
  • DOW JONES ANALYSIS AFTER CLOSING BELL


  • Today's fall may be limited to the 50 Day Moving Average.
  • But a close near day's low will confirm the trend reversal. which means we will see negative day's going forward.

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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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