- There is a triangle formation in apples daily chart.
- Break of the triangle in line chart should be confirmed by a daily close below the support line.
- The stock is trading below its 50 DMA.
August 13, 2010
- When this triangle formed i was expecting a 50 point move towards the break out side.
- So from 5425 this should touch 5475 but a partial booking of profits to secure profits is suggested.
- Triangle breaks out on the upside.
- The up move will gather momentum above 5440. An hourly close above 5440 will give confidence for the bulls.
- If gets resisted at 5440 price will come back to the break out point.
- TRIANGLE WAS MENTIONED YESTERDAY CLICK HERE TO SEE IT
- Nifty managed to come back above the 5 day low ema and closed above it.
- But nifty for the second day has closed below 20 DAY SMA. And the more it trades below its daily 20 SMA the more bearish it gets.
- The stochastic indicator has been showing negative divergence for quite sometime without any major correction. So If the price falls below 5350 the negative divergence will take effect.
- Nifty futures is showing a triangle in its 5 minutes chart.
- Dow Jones is taking a pause at the 50 DMA.
- But the support may only last till the next wave of selling that may come today.
- From 10700 to 10300 support levels are broken in a hurry so a reversal may not come now.
- If 50 DMA breaks 10000 will be seen.
- Dow Jones futures 30 minutes chart in a triangle.
- Break out can give close to 100 points towards the break out side.
- False breakouts are also possible. Triangles are known to do that. But dow is 400 points down from 10700 so an upper break out can be traded for a small bounce.
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