September 27, 2010

  • Dow Jones Futures Index is showing a range of 10755 - 10844.
  • Within this range Dow is Trading near a resistance line. Breaking out above the resistance line will take it to the top of the range. If gets resisted by the line, index will move towards 10755.
  • Dow Jones futures daily chart shows an ascending channel.
  • Price at the top end of the channel. Candlestick pattern for the previous day shows an inverted hammer which is bearish.
  • Bulls will be safe only if the index trades above the inverted hammer.
  • S&P 500 has made a negative break down in hour chart. Negative for the bulls.
  • Things are looking good for the bears as of now
  • S&P 500 Futures hour chart with a pennant formation.
  • When a pennant occurs in up trend it is called as a bullish continuation pattern.
  • The rules of the pattern suggests upside breakout from here. Let's wait and see how this one goes.
  • The trend line of the broken channel acting as resistance.
  • Up move is possible only if NF comes back into the channel. Till then the broken area will act as resistance.

  • An Up move is possible only if NF trades above 6057.
  • Trading below 6042 will be negative for the bulls.
  • NF is showing a high of 6091 and a low of 6058.
  • Below 6058 NF may try to fill the Gap.
  • Above 6072 NF will get closer to the day's high at 6091.
  • Reliance has given a spinning top near the support area of 993. If this level holds we may see a rally towards 1030.
  • The stock has also done a breakout above 50 DMA and a classic retest of the DMA, This should be followed by a rally to break the recent high made.
  • Above scenario possible only if Reliance trades above the range of 993 - 1007. Below 993 it will favour the bears.
  • First chart shows Nifty's steady climb to the top. As i have said in the chart it seems the top or the destination is not yet reached.
  • Second chart shows the amount of profits someone would have made if he or she had decided to trail his position with 5 day low ema. As i said in the chart if 6037 breaks today, the meeting of nifty and 5 day low ema will get extended.


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.


Blog Archive

Powered by Blogger.

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