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 MONTH CHART
  • 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. 
  • NIFTY DAY HIGH BREAKOUT TRADE
DOW JONES FUTURES
  • 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.
  • AT&T TRIANGLE PATTERN UPDATED

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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"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