September 9, 2010

CHART-II
  • We got an easy entry at no 3 marked on chart when the index made a higher low at the trend line.

CHART - I
  • The stochastic has reached the oversold region 3 times But index is making higher low's consistently.
  • Now for the 3rd time if the trend line holds we will get another long trade from here.
  • If Trend line breaks then we may get good correction..
  • S&P 500 was trading in a range of 1091 - 1105. The range has broken now and a rally up to 1110 was seen.
  • Now the index retesting 1105 again. Keeping a small stop loss one can go long.
  • This range of S&P 500 was mentioned yesterday in this POST
  • Dow Jones futures 4 hour chart with trend line and resistance line. 
  • The trend line was violated after yesterday's close But 10300 level has given good support for the index.
  • Now the important levels to watch out in Dow Jones futures is 10400 at the top and 10300. Violation of these two levels can give good direction for the short term.
CHART - II
CHART - I

  • Nifty futures is showing a high of 5629 and low of 5595. 
  • Break of these levels can trigger breakouts in the patterns suggested earlier.
  • If not we will remain in a range for sometime
  • The hour chart is getting ready for a big move.
  • Breakout from the apex of this pattern can give good direction.
  • Normally these kind of patterns break the support line and gives a correction. But nifty hasn't shown any weakness till now. So both trades are possible from here.
  • Those who are long from sub 5500 can hold their longs with trailing stop losses. Fresh longs are possible only after a breakout. 
  • Breach of the hourly trend line can trigger a short sell. A bigger short trade is possible if 5566 is broken in NF.
  • Nifty futures is trading near the resistance line of the broadening pattern that was formed yesterday.
  • The resistance line has given good entries for short trades. So if the day high of 5629 is not taken out soon we may get another short trade soon. 
  • The breakout in nifty's weekly line chart is still intact.
  • Only if nifty comes below 5530 the breakout will be in trouble.
  • As long as nifty maintains above 5530 - 5550 Bulls does not have any problems.
  • Yesterday's price action shows indecision. As if market is waiting for something to happen. We can expect good movement in either direction in one or two day's.
  • Sesagoa Ltd is falling from a weekly head and shoulders pattern.
  • Daily chart is showing a triangle pattern.
  • So if the weekly pattern is going to work perfectly the triangle should beak on the downside. 
  • One can go short once 311 is taken out for a minimum target or 303.
  • If 303 is broken the stock will target 290 levels.
  • But for now play for the minimum target once 311 breaks. Keep a stop loss of 332 for this trade
  • S&P 500 daily line chart is showing a triangle formation with the price at the moment resting near the top of the triangle. If it gets resisted here the index will come down to levels of 1050.
  • If it gets a breakout S&P 500 will rally to the recent high of 1130. 
  • Moving averages are favouring bulls at the moment with price trading above 20 and 50 DMA, But that can change in one or two trading session as we have seen in the past. 20 dma has crossed below 50 dma which should keep the bears interested.
  • The S&P 500 futures hour chart may give good direction for the short term Click Here to see the chart
S&P 500 FUTURES CHART
  • S&P 500 futures is trading close to important support and resistance lines.
  • The trend line in hour chart looks good and can push the index higher if it gives proper support.
  • If the trend line is violated one should watch the level of 1086. If the index start trading below 1086 the correction can be large.
  • For the bulls an upper breakout is also possible, with important resistance at 1107 above 1107 a rally till 1130 is possible.

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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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