October 28, 2010

  • EURUSD daily chart with 20 DMA.
  • Pair has crossed above 20 DMA and is now moving towards the top of the triangle pattern.
  • Currency pair may find resistance near the top of the triangle.
  • Microsoft daily line chart with 200 DMA.
  • Stock will soon have an encounter with its 200 DMA.
  • Stock is approaching its resistance zone of 26.28 - 26.90. 
  • 200 DMA is just above this resistance zone. We will know soon if the stock is going to break above into the bulls zone above 200 DMA or remain in the bear zone below 200 DMA.
  • TRIANGLE OF DOW JONES
CHART-II
  • Dow Jones takes support near the support line of the triangle.
  • Price is approaching the apex of the pattern so we can expect a breakout soon.
CHART-I
  • Dow Jones Hour chart with support and resistance lines.
  • Chart is showing a triangle formation.
  • Price approaching the bottom of the triangle. If price gets support here an up move is possible.
  • Breakdown from the triangle will favour bears and may take price below 11000.
  • If price gets support up move can last at least till 11140 were price may find resistance.

  • SPX Hour chart trading in a channel.
  • Index was moving in favour of the bulls but price has been dragged down toward the bottom of the channel. 
  • This may be an attempt to shake out the weak bulls and then another up move may happen from here. 
  • Unless the bottom trend line is broken bulls need not worry.
  • USDJPY TAKING A U TURN
  • USD/JPY after making a good come back seems to be going down again.
  • 80.82 is an important support.
  • Breaking 80.82 means revisiting the lows again.
DAILY CHART
  • Dragonfly Doji in dow jones Futures chart.
  • The appearance of this candle shows the strength of buyers and the candle shows the momentum of price. So this pattern can push the price higher to an extent wherever they occur. The success rate of this pattern is quite high. 
  • The shadow at the top is acceptable if it is small. The perfect dragonfly doji does not have the shadow at the top.
  • S&P 500 four hour chart with the pull back from 1167 area which started yesterday.
  • The pull back seems to be gaining momentum. 
  • If ES crosses 1188 it will test 1192 were it may find resistance.
  • DOW JONES CHART WITH 50 AND 200 HOUR MOVING AVERAGE

  • Daily chart of nifty futures showing a clear top for the current up move.
  • 5937 is the next important support for nifty futures.
CHART-II
  • 50 Hour moving average and the trend line joined together to pull NF down. 
CHART-I
  • Hour chart with trend line and the 50 hour moving average.
  • The current hour is resisted by both the moving average and the trend line.
  • So if nifty manages to break above it will gather good momentum.
  • But possibilities are NF may face resistance here.
  • Nifty futures hour chart with possible lines that could resist and support the progress of the index.
  • Two lines of resistances are drawn NF is finding it tough to cross the first one. If it spends more time without breaking above it NF may come down to 6030 levels or even to the bottom support line. 
  • Break of the first resistance may trigger a rally towards the major resistance line drawn here.
  • Break of support line will be negative and if 6000 breaks we may see an extended correction.
  • Nifty Fib levels showing the resistance at 23.6%
  • 2nd chart shows a range of 6000 - 6042
  • 6042 is near the 23.6% fib level area. So if nifty futures breaks above 6042 it can move till the next area of 38.6% level.
  • Remaining in the range breaking the bottom level can extend this correction.
  • Bank nifty is near its support level of 12037 - 120368.
  • Index is also showing a consolidation triangle pattern.
  • So price should give good direction soon.
  • Nifty has closes well below 20 sma and the 5 day low ema showing weakness.
  • Most of the recent closes below 5 day low ema has been bought by the bulls so we may see that happen again.
  • Daily chart is also showing a triangle shaped consolidation which may give good direction
  • NIFTY FUTURES SUPPORT LEVELS

DAILY CHART
HOUR CHART
  • Daily chart made a good comeback today from the low of the day which was at 1171.70 to close above 1182. 
  • Intraday dip below 10 DMA did not sustain. Bulls showed a hammer candle which is a bullish reversal pattern when comes at the bottom of a trend. This candle may not be of much relevance here but shows the attempt of bulls to keep the price above crucial levels.
  • One look at the hour chart shows a channel formation with today's low touching the support line and reversing probably towards the upper end of the channel or at least towards the middle of the channel.
  • CLICK HERE TO SEE HOW DOW JONES REVERSED TODAY.
  • Break of 1179.52 eventually led to the break of the resistance line.
  • Price has made a close above the resistance line which can lead to a continuation of this up move tomorrow.

CHART-I
  • S&P 500 is trading below the trend line in 15 minutes chart.
  • Strength can be seen only if price breaks and trades above the trend line.
  • Today Price is showing a range of 1171-70 - 1179.52.
  • Violation of either of these numbers can give good direction.
  • Break of 1179.52 may find resistance at the trend line.

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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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