October 6, 2010

CHART-II
  • S&P 500 Futures Breaks 1153. But the downside may be limited
CHART-I
  • S&P 500 Futures index ran in to resistance at 1160 levels.
  • Index is retracing towards the breakout point and May find support at 1153 levels.
  • For now price may trade in a range of 1153 - 1160 levels. Break of 1153 may slide it down to 1147 levels.
  • APPLE is trading above 61.8% Fib level of the recent fall to 274 levels.
  • Breaking below 61.8% can drag the stock to 50% or 285 area
  • If it continues to trade above this level, We may see another high for Apple during this week.
  • The stock has closed above its 50 hour moving average and the Ichimoku Cloud again.
  • Breaking below the 50 hour moving average and the cloud will be negative for the bulls.
  • S&P 500 Futures index four hour line chart.
  • Index broke above 1148 level which was the last closing high for this time frame.
  • Price rallied up to 1160 level and got resisted there. Price may try to retest the breakout area before going up again. So this dip will be a good buying opportunity provided key levels like 1148 is not broken on closing basis.
  • Reliance industries 200 dma is at 1034 levels.
  • The resistance above 200 dma is at 1048 levels.
ONE HOUR CHART
  • One hour chart is showing a possible double bottom in nifty futures.
  • Try to enter on a breakout above 6234.
  • As discussed in the below chart price trading below 6198 will make the bulls weaker and give bears a chances A risky chance for the bears.
4 HOUR CHART
  • Nifty 4 hour chart showing the current price action as a breakout from a consolidation. 
  • If NF continues to trade above 6198 bulls have nothing to worry.
  • Bears will become confident only if price starts to trade below 6198.
  • Watch how the bigger time frame has less noise things are clear out here.
GAP
  • NF is still within the range of 6167 - 6246.
  • Today NF gave a good gap up mainly due to the U.S markets. Till close yesterday nifty was showing weakness it turned out to be a bear trap. 
  • Now if today's gap starts to fill it will be back to the same selling zone of yesterday. Staying above the gap NF may try to breakout. 
NIFTY SPOT DAILY CHART
NIFTY FUTURES 30 MINUTES CHART
  • Nifty did not show much weakness as expected by the formation of an inverted hammer.
  • Index made a small correction and closed near the 5 day high ema.
  • Nifty futures has to trade outside the range of 6167 - 6246 for making good moves.
  • First chart shows the daily time frame of S&P 500 with that big breakout. It closed up more than 23 points.
  • 50 DMA is approaching the 200 DMA, we may get a golden cross soon.
  • Week chart is also looking bullish with that resistance at 1150 broken and closed above 1160.
  • Dow Jones Futures daily time frame. 
  • A big green candle breaking above the resistance line can be seen.
  • So far so good for the bulls, Now what they need is a close towards the high of the day.

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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"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