October 4, 2010

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CHART-II
  • Has taken support at 1127 as discussed in the below chart.
  • But one should also lookout for a possible head and shoulders pattern with price taking support at its neck line at 1127. Break of the neckline will be negative for the bulls .
  • If neckline continues to give support an up move towards 1134 can be seen
CHART - I
    • S&P 500 Futures has given a breakdown from the hour trend line.
    • Now 1127 in S&P 500 Futures can give support. If this level breaks then the correction may get deeper.
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    • S&P 500 Futures hour chart is showing some upside momentum.
    • But on closing basis 1144 is proving to be big resistance for the index.
    • Closing above this zone and trading above it can only give a sustained up move for SPX.
    • INTRADAY LIVE CHART FOR S&P 500
    DAILY CHART
     HOUR CHART
    • First chart is the Dow Jones Futures daily chart which is trading outside the ascending channel. There is a resistance line drawn at the top of the daily chart. Good Moves in favour of the bulls are only possible if the resistance line is broken convincingly and at least a daily close happens above the resistance line. But the more time price spends below or outside the channel it increases the risk of a breakdown. 
    • The second chart which is the hour chart shows a triangle formation with one false breakout to the upside. This pattern may give an early clue to which side the daily chart is going to go. Since we already had a false breakout the next breakout may be a legitimate one.
    • NF daily chart has given a bearish candle
    • NF was not able to sustain at higher levels today.
    • Long tail of the candle suggests selling pressure at higher levels.
    • A weak opening tomorrow will confirm the weakness in nifty. 
    • Reliance communication is showing resistance at 181 , 193 and 207
    • The daily chart is showing a steady decrease in volume and the stock trading in a small range.
    • Breakout above 176 with good volume can give 181.
    • Today stock is trying to breakout on the upside as can be seen from the intraday chart posted below.
    • INTRADAY LIVE CHART FOR RELIANCE COMMUNICATION
    • The gap that was created by NF in the morning has been filled.
    • Now if the price stays above fridays price actions it will still favour the bulls.
    • Only if it starts trading below friday's closing price bulls has to worry. In that case a retrace till 6150-6160 levels can be expected.
    • But if it continues to trade above friday's price action we can expect an up move any time.
    • NF has given 12 Green candles in row. Some correction or sideways movement can be expected before the next big up move.
    • Nifty Futures today achieved 6243 the target given on Friday CLICK HERE TO SEE IT.
    • Rather then saying the target achieved i should say that the technical s worked perfectly. Many times after a breakout the index will try to confuse us by retracing, which did not happen in this case. It was a clean breakout and never looked back.
    • Nifty Futures gaped up today and made an intraday high  of 6219 as of now.
    • Staying above the gap will completely favour the bulls.
    • and as i said in the chart a retrace can also happen which can still trap the bears.
    • The range that formed on nifty recently was broken on Friday.
    • Target for this breakout is 6214. I have given target for Nifty Futures in an Earlier Post: Click here to see it
    • Second chart shows how important candlestick formations at important places a hammer at the important support zone of 5350.
    SOME CHARTS POSTED DURING WEEKEND

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    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