August 13, 2010


  • 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. 
 15 MINUTES CHART

DAILY CHART
  • Dow Jones 15 minutes chart is trading in a channel.
  • The channel may give an early indication to which side the daily chart is going to go
  • Price in daily chart is holding on to 50 DMA.
  • Dow Jones Futures 4 hour chart with important support levels.
  • Right now its trading between 10225-10366 levels. 
  • An up move from here may hit resistance near 10366 levels.
UPDATED CHART
  • 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.

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