- SPY with its broadening top pattern in hour chart.
- The resistance line of the pattern was violated today But price has come back into the pattern.
- Now price is in a range of 118.72 - 119.75. Further large movements will happen only after the violation of this range.
October 25, 2010
- Reliance Industries has good resistance at 1095.
- On Friday stock came to this level and stopped its up move.
- any up moves from here can only happen if the stock closes above 1095.
- MACD is showing a negative picture but that can change if the stock moves above 1095.
- NIFTY WITH 20 SIMPLE MOVING AVERAGE
- Daily line chart is showing a triangle pattern. One should look for a close outside the triangle pattern for getting in.
- Along with the triangle pattern one should also keep in mind the position of the 200 DMA . Since the stock is trading close to its 200 DMA. The breakout or breakdown that moves the stock away from 200 DMA will give large moves. But one should make sure that the breakout is sustainable to make such a move.
- Weekly chart is also close to a make or break area. So for the breakout to enter the stock.
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