October 6, 2010

  • S&P 500 Futures Breaks 1153. But the downside may be limited
  • 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 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.
  • 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.
  • 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 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.


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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