November 24, 2010

  • Dow Jones hour chart is showing a range of  10980 - 11200.
  • Price is trading near the upper end of the trading range. 
  • Price is trying to go above the ichimoku cloud in hour chart.
  • If a breakout happens price should close and sustain above 11205 for a larger up move to happen. Otherwise this will be a perfect place to short. Oscillators have come to the overbought region for hour time frame.
  • Silver seems to be creating a Flag.
  • This one a bull Flag. If the flag gives an upside breakout hour should close above 27.80 for bullishness to sustain.
  • Breaking the support line will be an opportunity to go short.
  • EURUSD May turn around from 1.32 levels.
  • The supporting TREND LINE may reverse the down trend in daily chart.
  • Break below 1.32 will be negative and extend this correction.
  • MSFT is trading near its 50 Day Moving Average.
  • Stock could not sustain above its 200 DMA and was followed by this correction.
  • Now the indicators like Stochastic and RSI is showing oversold readings.
  • IF 50 DMA holds this stock can give a decent bounce from current levels.

  • Four hour chart of ES with ichimoku cloud.
  • When the trend was up every dip into the cloud resulted in buying and recently price broke and closed below the cloud, Result is every rise into the cloud will be met with selling.
  • Cloud is reliable in larger time frames.
  • ES is showing good support at 1173 on closing basis. Resistance at 1205 level.

  • Reliance Industries chart on weekly time frame.
  • 965 to 995 seems to have given lot of support for the stock.
  • But breaking 965 will be bearish as it can slip to 920 levels from there.
  • But for now since the stock is holding on to this level we can expect a turn around especially if the stock closes within this range of 965 to 995 or above that.

  • Nifty Futures getting resisted exactly at 50 hour moving average
  • This level should be taken out for bulls to take control and 6022 for confirming the trend change
  • Nifty Spot weekly chart gave a trend line trade yesterday.
  • Those who followed weekly trend lines would have got a nice entry. I missed it.
  • Now last two times price gave a hit on this trend line and started running up a similar price action can give lot of profits for those who are holding longs. But if price starts to test it agian we may see it getting broken.
  • We may see real strength coming back to weekly chart only if nifty spot crosses 6020 levels.


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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