August 30, 2010

  • Dow Jones is trending down in a channel in 10 minutes time frame.
  • The current down move may find support at 10040 levels. If 10040 level does not hold then the correction will be large.
CHART - 2
  • 20 Hour moving average broken and the index is moving towards the lower end of the range as discussed below.
CHART - I
  • S&P 500 may trade in a range of 1039 - 1065 for sometime to come.
  • Right now the index is resting at the 20 hour moving average and below 50 hour moving average.
  • If 20 hour moving average does not give support index may move to the lower end of the trading range.
CHART - II
  • If The white line in the channel breaks correction can extend to 9900 levels

CHART - I

  • Dow Jones futures has hit the resistance line and is going down.
  • It seems the resistance line is too hard to break for now. 
  • 10040 is a very important support zone. 
CHART - 2
  • Nifty futures broke 5425 and is moving down to test the support line at the lower end of the range mentioned in the below chart.
  • NF may give a long trade from here. But one has to be careful, if 5396 breaks NF may correct further.
CHART - I
  • Nifty futures is showing a range of 5396 - 5461
  • 5425 is the mean. 5425 is the low point for today till now.
  • If 5425 breaks NF can slide to the lower end of the range.
  • If 5461 breaks NF will favour bulls.
  • Bears of reliance industries seems to be too strong.
  • Price continue to go down. Stock is trading below 50 DMA, 20DMA and even 5 day low and high ema's. It is consistently closing below these moving averages.
  • Since the stock is coming down after breaking a triangle, every rise will be faced with selling pressure as the stock is facing now. Break of 1007 was a great place to short. Again I suggested to go short at 958 in this POST, stock on friday made an intraday low of 946.
  •  Adding to this there are good trend lines have formed as overhead resistance. I have shown it in 2nd chart.
  • The only hope perhaps for the bulls is the positive divergence that's developing in daily chart which can negate all the negative things that i have mentioned above.
  • RELIANCE INDUSTRIES LIVE CHART WITH EMA
  • TATA STEEL has been  down trend ever since it broke down from the big channel in its daily chart as i have shown in the first chart. And right now there is a continuation pattern developing here. Breakdown of 500 levels and a close below 500 will confirm that.
  • Stock is in a trading range of 449 to 553. Right now the stock is moving down within this range.
  • Since the stock is oversold the daily stochastic may give a buy signal by moving above 20% line, combine that with a short term trend line break in daily chart which may give a rally towards the top of the range. Those who are stuck in longs bought at the top of the range can use this to exit.
  • Stock will not be positive unless it breaks 553 convincingly. 
  • TATA STEEL INTRADAY LIVE CHART WITH EMA

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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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"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