October 1, 2010

APPLE hour chart with the cloud

  • Apple is trading near an important support area for hour chart.
  • If the stock closes below 281, Price in hour chart will fall below the ichimoku cloud. This will result in a trend reversal for the hour chart.
  • So bull will try hard to defend 281. If a rally happens from this level it might get resisted near the blue line drawn above or between 285 and 286. Breakout above 286 will be positive for the stock.
  • The risk for the bulls is a close below 281.

EURUSD Hits the target

  • EUR/USD Pair hits 1.37
  • This was the target i mentioned when it broke out of the rounding bottom formation as MENTIONED IN THIS POST

S&P 500 futures before opening bell

  • S&P 500 Hour chart gave a false breakout yesterday.
  • Today the index may give another breakout from this triangle pattern.
  • The breakout if happens should sustain and close the day above 1150 for it to be a legitimate breakout.

Nifty intraday update

  • NF hits 6150 the target for the breakout above 6091
  • As i said in the chart the entire move of the channel was covered by 4 candles. It's going up faster, one of the lessons learned from ILANGO Sir
  • NF near 6091. Breakout above this level will be positive for the index and will target 6150 and above that.

Nifty daily analysis

  • It was around 5400 when nifty left its 5 day low ema, and after giving 600 points they met again. But it was a positive ending for the bulls. 5 day low ema acted as support and nifty closed near the 5 day high ema.
  • Although nifty came back strong from 5960 levels it was still not able to close above 6035 the selling zone mentioned in an earlier post.
  • So more upside from here only on a strong close into the selling zone above 6035.

RELIANCE Industries analysis

  • Reliance industries broke its 50 DMA yesterday and it also went below its support level of 993.
  • Stock made an intraday low of 978. 
  • Stock has closed below its 20 and 50 day moving averages.
  • Next main support for the stock comes at 958. If the stock need to avoid another big correction it has to come back above 20 and 50 dma and close above this level.

TATA STEEL hits resistance

  • Tata Steel hits resistance exactly at the levels MENTIONED IN THIS POST.
  • Daily chart is also showing negative candlestick pattern like an inverted hammer or a shooting star.
  • S one can expect positive movements for bulls only if the stock closes above 660 levels.

BANK NIFTY analysis

  • Bank Nifty closed above 5 day high EMA and with a Bullish engulfing candle stick pattern.
  • We may not give too much importance to the bullish engulfing because this pattern is more effective if it comes at the bottom of trend. Still i am pointing it out to show the positive momentum of the index.
  • Stocks lime SBI made good moves yesterday that pushed Bank nifty higher. Those stocks should move even higher today if this mad run of Bank Nifty is to continue.
  • Look for positive movements above 10360. Be cautious below this level.

Dow Jones analysis after closing bell

  • First chart is the dow jones spot chart in daily time frame.
  • Index had a negative day But has managed to close above the 10 DMA.
  • Second chart shows the Dow jones index Futures chart in daily time frame. The candle for the day has Violated the ascending Channel. 
  • The fact that the channel was violated is Negative. If one daily candle close outside this channel we may see sharp correction in the coming days.