Stock Market Chart Analysis: 08/26/10

August 26, 2010

Dow Jones hits the trend line in 4 hour chart and is heading down.
If 9988 breaks that could lead to 9939.
Bulls should try to stay above this trend line otherwise a sell off is unavoidable.
LIVE INTRADAY CHART FOR DOW JONES WITH EMA

Dow Jones futures made a good recovery today from the low of 9916.
For today's trading session if the index continue to trade above 10032 a good rally is possible on the upside.
The rally also means price entering the falling wedge pattern which is good news for the bulls.
Support line of the wedge can act as the resistance, 10138 level can also act as a resistance on the upside.

CHART- 3

CHART - 2

CHART - 1

Nifty futures hourly chart should give good direction soon.
Price is trading close to support and resistance lines
Look at the volumes, index is trading with very low volume.
look for a volume spike along with a breakout in both spot and futures to get in.
CLICK HERE FOR LIVE CHART OF NIFTY

Tata steel line chart looks bearish as the stock has broken down from a channel.
This can also be a bearish flag pattern in daily chart.
Below 500 tata steel stock will face selling pressure.
If the bulls need to come back the stock should trade convincingly above 510. Then the pattern will become a busted pattern which can give a rally on the upside.
For now any rally will face resistance at 510. Below 500 bears will be very safe to hold on to their short positions.
LIVE INTRADAY CHART FOR TATA STEEL

Nifty has closed below 5 day low ema.
Nifty is trading close to its 20 day moving average.
Index is still trading inside the up trending channel. a daily close below the support line of the channel can give a large correction.
In recent times when ever the index closed below 5 day low ema and 20 day moving average it has managed to make a comeback. But when the trend decides to changes this may not happen. One should trade with caution.
S&P 500 ANALYSIS AFTER CLOSING BELL

S&P 500 Index closes the day with 3.46 points or 0.33% gains
S&P 500 is trading in a down trending channel as shown in the first chart. So bears can hold on to their shorts until the upper trend line of the channel is not breached.
The index also had a falling wedge pattern which broke in favour of the bears yesterday. But in the final hours of today's trading there was a pull back towards the broken area of the wedge casting some doubts into the minds of the bears.
But for me the most important chart is the third one. See how 1050 is acting as support on closing basis. So if this area breaks in the coming sessions on closing basis, next target is around 1020. For now 1050 is acting as good support.