October 8, 2010

CLICK THE CHART TO ENLARGE
  • EUR/USD Currency pair has been respecting this trend line drawn in 4 hour chart for quite some time now.
  • It started from 1.26 and the pair crossed 1.40. The trend line is yet to be violated.
  • This shows the effectiveness of a Trend following trading system.
  • USD/JPY VIOLATES THE WEEKLY SUPPORT LINE
CHART-II
  • S&P 500 Futures is approaching the top end of the pattern as discussed below.
  • Next likely targets are 1163 and if sustains above 1163 it can go up to 1166.
CHART- I   BEFORE OPENING BELL
  • Broadening pattern of S&P 500
  • Today the index made a low of 1146. Took support at 1146.
  • If that level holds that may be the low for this week. And the index may be heading towards the top end of the pattern
  • Apple today broke out of the smaller range mentioned yesterday which was 285.11 - 291.87.
  • Breakout above 294 will be positive for the stock and can give a good rally in favour of the bulls.
  • If keeps on getting resisted at 294 without crossing this level it will be negative.
CLICK THE CHART TO ENLARGE
WEEKLY CHART
MONTH CHART
  • USD/JPY has violated the Weekly support line that has been giving support for the pair.
  • 81 area is important because the month chart is showing support here.
  • So closing below 81 will be bearish for this currency pair.
CHART - II
  • Gold has closed above the resistance area mentioned below. Sustaining above 1350 can push prices higher again
GOLD HOUR CHART - I
  • Gold hour chart is getting resisted at 1343 levels.
  • 1343 is quite close to the 50 hour moving average. 
  • Yesterday it broke down below 50 hour moving average. So if it trades above 50 hour moving average and 1343 level hour can turn bullish again.
  • Dow Jones Futures daily chart with resistance levels.
  • Index is struggling to cross 10915 levels. 
  • For the last two days price tried to stay above this level. But was not able to do it.
  • Now 11000 levels can be achieved only if price crosses 10915 with big volumes.
  • S&P 500 ANALYSIS AFTER CLOSING BELL
CLICK TO ENLARGE THE CHART
  • Broadening pattern of S&P 500
  • Today the index made a low of 1146. Took support at 1146.
  • If that level holds that may be the low for this week. And the index may be heading towards the top end of the pattern
  • Nifty futures is showing a large range of 5960 - 6246
  • 6093 will be the midpoint.
  • If 6093 breaks one should keep in mind the Fibonacci levels mentioned in the previous post..
  • An up move is possible from 6093 levels.
  • Nifty futures is trading at 38.2% retrace level.
  • It has taken support at 38.2% level today. If this level breaks it will be negative and one can expect to see price near 50% level.
  • But if the support is strong at 38.2% we can expect a rally towards 23.6% and above.
BULLISH VIEW
BEARISH VIEW
  • Reliance Industries is forming a likely CUP AND HANDLE pattern. with breakout area around 1048 - 1053. Stock should trade above this area.
  • But if one see the second chart the stock is getting resisted below this trend line. So any breakout is possible only if the stock trades above this line.
  • Nifty is trading close to its 5 day low ema this was were nifty got support last time. Nifty may get support from this ema again. One has to watch carefully though as a break and trade below this ema may also be negative for the short term.
  • From the second chart one should understand that if nity is to make another all time high it will break 6222. It may be safe to go long above this level with a small stop loss.
  • CUP AND HANDLE OF RELIANCE INDUSTRIES
  • S&P 500 Index continues to close above its breakout point of 1150.
  • The second chart is the line chart with two dips below 10 DMA. Even though it closed below the DMA next day it was bought by the bulls. So a dip below 10 DMA or up to 1148 - 1150 can be used it as a buy on dip opportunity.

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.

Followers

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