August 31, 2010

  • Dow Futures broke 9965 and gave a long trade as discussed below.
  • Now next resistance is at 10064 above that may rally towards the channel resistance line.
  • Dow Jones futures breaking 9965 was negative for the bulls.
  • Now if the index trades above 9965 convincingly a long trade is possible
  • Nifty bounces from 5360 levels as discussed below.


  • Nifty futures may give a long trade from 5360 levels.
  • One can keep a stop loss of 5346 for this trade.
  • Nifty did a gap up on Monday but faced selling pressure throughout the day and closed near the recent lows.
  • the index has closed below 20 DMA. It is testing 50 DMA. Closing below 50 DMA will test important support areas.
  • U.S. markets also ended in the negative territory which may give a gap down for us.
  • S&P 500 analysis after closing bell
  • Upper trend line of the channel seems to be too strong to break.
  • Most of the gains made by the bulls on Friday has been taken off 
  • Now the 20 DMA and 50 DMA is ready to give a negative cross over. So some more down side possible.
  • The direction will be decided once the range in hourly chart discussed earlier in this post gives direction


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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