- S&P 500 Hour chart with 200 hour moving average.
- Price is trading below the moving average.
- We have to see if this is a dip below the average or a complete change of the trend.
- Price if continue to close below this level will confirm a trend reversal.
- On the contrary a reversal from here to close above this moving average may resume the primary trend.
November 16, 2010
- GOLD dips below the weekly trend line.
- Gold has taken support at the weekly trend line today.
- If the trend line gets broken we may see good correction.
- Trading below 1345 will favour the bears and the current down move will gain strength.
- Sustaining above the trend line increases the chances of a reversal.
- Nifty futures broke 6056, price stayed below 6050 and has broken below 6000.
- Another range breakdown trade that has worked well.
- Bulls may try to keep price above 6000.
- Nifty futures approaching the bottom of the range.
- Price may take an intraday turn towards upside from 6050 levels.
- Breaking down below 6050 will favour bears and may drag it down till 6000 NF.
NIFTY WITH 50 DMA
NIFTY DAILY CHART WITH TREND LINES
- First chart shows how price hits 50 DMA and taking support there.
- 2nd chart is the daily chart with trend lines. First of those trend lines has been violated but price managed to close above it. If price goes below it again we may see good correction that also means that 50 DMA gets tested again which may not be good news for the bulls.
- But if price stays above both these trend lines and 50 DMA we may see good upside momentum.