August 19, 2010

  • The index on breaking the support went below 10200 as described below.

  • Dow Jones Futures is trading in a falling wedge in its four hour chart.
  • The direction for the next big move will be decided soon. 
  • Breaking of the upper trend line can take the index close to 10600 levels.
  • If the support line breaks Index will go below 10200.
  • Nifty has been in consolidation mode for more than 11 months now.
  • Today nifty has broken the monthly resistance line
  • Big profits for the bulls can be expected only if the index stays above the resistance line.
  • If the index falls below the resistance line correction will follow.
  • Staying above the resistance line should give the expected result after a consolidation breakout. In this case the consolidation range is more than 500 points. But the breakout area is crucial.

  • Nifty is close to breaking the trading range that the index has been trading for the past five weeks.
  • The second chart shows how the index reversed from below 20 SMA consistently.
  • Third chart shows the month chart close to breaking an important resistance line that can push the index higher. 
  • Dow Jones industrial average closed up 9.69 points or 0.09% up.
  • Index closed above the 50 day moving average again and below its 20 day moving average. 
  • The current trading range is between the fib ratio of 23.6% and 38.2% of the indexes rise from 9614 to 10719.
  •  Dow Jones futures shows 2 similar trading day's. today's breakout was resisted near yesterday's high and again like yesterday the index lost all its gains.


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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