August 23, 2010

CHART - 2
  • Support line of the wedge is broken. Index is moving away from 50 DMA. But Falling wedges are considered to be bullish pattern, Since this pattern has given a break down in favour of bears, Bulls would hoping for a busted pattern.
CHART - 1
  • S&P 500 is trading in a falling wedge pattern.
  • Today a rally is going on towards the upper trend line of the pattern were it may find resistance. The resistance levels is about 1087-1089.
  • Dow Jones futures is trading in a falling wedge pattern.
  • The support line of the wedge was tested and violated on friday when the index traded at 10140 levels But the index made a smart recovery to close well within the pattern.
  • Since the trend is down the chances of another attempt to break the support may happen again. other thing to note is that the price is approaching the apex of the pattern  so one may wait till a clear direction emerges before taking a position.
  • Nifty has made the upside breakout. NF was resisted at 5541.
  • Now keeping 5520 as stop loss one can try for 5550 as minimum target

  • Nifty futures is showing a flag pattern.
  • This being a continuation pattern breakout is expected to be on the upside.
  • But beware of  false breakouts too.
  • NIFTY INTRADAY LIVE CHART WITH EMA
  • Reliance industries is trading below an important trend line shown in the first chart. Stock should break this trend line and trade above it for bullish moves to happen. 
  • Second chart shows how the stock has broken a short term trend line. But it is still trading below 20 SMA. 
  • Trading above 20 SMA means Trading above the trend line shown in the first chart which should be positive. 
  • If the stock moves above 20 SMA and makes a daily close above it I am expecting the stock to touch 1040 levels. I
  • f the stock gets resisted at 20 SMA and the broken trend line of the first chart It will be bearish in the short term.
  • INTRADAY LIVE CHART FOR RELIANCE INDUSTRIES
NIFTY WEEKLY CHART
NIFTY DAILY CHART
NIFTY DAILY CHART

  • Nifty has broken out last week from the trading range of 5349 - 5492.
  • Now if 5486 is held on closing basis the immediate target would be 5600 and above.
  • Nifty is moving in a weekly channel. Channel resistance for next week is coming around 5600.
  • Nifty has closed above 5 day high ema for the 3rd day in a row. 
  • One can stay long as long as 5486 is held on closing basis.
  • DOW JONES ANALYSIS AFTER CLOSING BELL

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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