- Russell 2000 had good resistance at 670 region.
- This area happens to be the 50% retrace level for the index.
- On Friday the index made a good close above the 50% Fib level.
- Now if the index manages to trade above 670 it should target 685 and 695 as targets.
September 26, 2010
- Bank nifty seems to be heading for 12340 level again.
- Daily chart is showing a range of 12068 - 12340.
- Stocks like State Bank of India are poised for an upside breakout again so some more upside left in Bank Nifty.
- Break of 12340 can give another good up move for this index.
- CLICK HERE TO SEE THE ANALYSIS ON SBI
- Tata chemicals is consolidating after a good bull run from 340 levels.
- Stock has good support at 394. So one can buy it above 20 DMA
- Stock has formed a Kind of diamond pattern. Diamond's are reversal patterns. But the price action seems to be hinting towards an upside breakout.
- One can remain long above 405 or the 20 Dma with a tight stop loss.
- Two weekly chart of Dow Jones Industrial Average.
- First chart shows Dow Jones closing above an important resistance line. And this is also a 20 week high for Dow Jones.
- Second chart shows the Fibonacci levels in weekly chart. Index has closed above its 61.8% Fib level which has given resistance for sometime. Next resistance will be at 10940 levels were the 78.6% Fib level is located, That can be kept as a first target for this positive weekly closing.
- SPY WEEKEND UPDATE
- Two charts SPY Fibonacci levels and the main levels for next week shown in the second chart.
- SPY is trading above its 61.8% fib level which is positive and next week if continues to trade above 61.8% level chances of 100% retrace level will increase.
- Main level to watch for next week is 114 and 115. Trading above 115 SPY will target 117. Trading below 114 will be negative and will be followed by a correction or a sideways move.
- S&P 500 daily line chart is showing a steady upward momentum. Index is making higher high and higher lows.
- Weekly chart shows previous resistance at 1150. Next week index should trade above 1150 for sustained up move.
- Daily chart has also completed a rising three method mentioned in the earlier POST.
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