November 9, 2010

  • First attempt to breakout of the channel has failed. Price comes back into the channel
  • 122.11 and 122.32 areas will act as resistance now. Up move will be possible only on a breakout above these two levels.
  • SPY 5 minutes chart is trending down in a channel.
  • Break of the channels resistance line may turn things in favour of the bulls.
  • But price should trade above 122.32 for an up move to happen.
  • Broadening top gave a breakdown and the hourly support at 11362 too did not hold.
  • Hour chart has turned completely negative.
  • Only if price crosses 11362 bulls can regain the upward momentum.
  • Broadening top has given a breakdown.
  • More downside will be possible only if price stays below 11360 area.
  • Dow Jones hour candles are showing shadows on either side which is hinting at another big move.
  • Chart is also showing broadening top pattern.
  • Price continues to trade and close below 20 hour moving average.
  • We had an up move today which was sold off. Next attempt to stay above 20 hour moving average may be successful.
  • 1220 is broken.
  • Intrday charts looks oversold. May get support between 1218 - 1220.
  • SPX Five minutes chart is showing good support at 1220 - 1221 area
  • Index may take a pause here.
  • Only if this support level breaks further down move can be seen
  • Dow Jones was hanging around the 50% Fib level for sometime and has given a sell from there.
  • If trades above 23.6% we can see a pull back from here.
  • Support for the hour chart is at 11360 levels.
  • Has to close an hour above 20 hour moving average for strength to comeback.
  • Resistance mentioned in the below chart turned out to be very strong. 
  • ES is showing a broadening pattern in hour chart.
  • Price tried to breakout of the pattern but was resisted at 1224.
  • More highs will be possible only if 1224 is taken out convincingly.

  • Repeated attempts at 6325 to break it was successful. Just like 6284 in the below chart.
  • Nifty futures tested 6284 three times before breaking out.
  • Now price tested 6325 three times.
  • If price testes a support or resistance levels many times eventually it will give a clear breakout.
  • NF gave good up move when it crossed resistance of 6284 and 6300.
  • Further up move will be possible only if nf stays above 6325
  • Nifty Futures 5 minutes chart with resistance levels.
  • The broken support level of 6284 should act as an intraday resistance. 
  • Only an hourly close above 6300 can give strength for the bulls.
  • This area between 6284 - 6300 may act as intraday resistance zone.
  • 6310 Broken and the GAP is completely FADED as discussed in the below chart
  • Today nifty futures opened with a GAP.
  • The GAP is partially faded.
  • Break of 6310 will be negative and may fill the gap completely.
  • Reliance communication in a triangle formation.
  • Stock is trading above its 200 DMA.
  • If stock gives an upside breakout it may move away from 200 DMA which will be bullish for the stock.
  • A Breakdown of the support level will be negative and a retest of the 200 DMA may happen
  • If nifty remains above 5 day high ema than we may not see the correction.
  • Nifty has closed above 5 day high ema, If it starts to trade below it than we may see some weakness.
  • Nifty has closed below 6284 which was mentioned yesterday. Bulls will try to scale above 6284 again if they are not successful we may see correction and spot may test 6250.
  • Another negative day for the dow jones industrial average after the big breakout of last week.
  • Today's correction took support at a trend line which was acting as a resistance before.
  • Dow after the intraday movement came back to close near 50% Fibonacci level.
  • 20 DMA has given good support for the index throughout this up trend. 
  • RUT is trading in a channel in 15 minutes chart.
  • Channel is a descending one. right now the index is moving up and if stays above 731 RUT may move towards the top of the channel where it may hit resistance again.
  • Things will turn bullish again above 734.
  • Break below 729 will favour bears. 731 is also an important level as shown in the second chart.
  • Dow Jones is finding it tough to cross the 50% Fib level of the recent high and today's low.
  • Intraday weakness can be seen below 38.2%
  • Breakout above 61.8% will lead continuation of the up trend.


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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