November 25, 2010

  • Nifty Futures important levels to cross are 5904 for bulls and 5859 for bears.
  • NF has been trading in a narrow range from morning since it is expiry day we may see some wild moves in the afternoon trade with caution.
  • LIC Housing Finance Ltd broke down from a descending Triangle pattern.
  • Stock came down more than 200 points. The fall was stopped at the 200 DMA yesterday, But the momentum and the News Flow may take it down Further.
  • It's interesting to note how a stock forms a bearish pattern before such news comes out.
  • Nifty spot is close to an important support and resistance line and will give good direction soon. If it beaks down 5750 is a good support area.
  • 20 and 50 day moving average is about to give a bearish cross. If it happens it will be negative for sometime.
  • Market moving above 6020 can reduce the bearishness.
  • Dow Jones could not hit the 50% retrace level today despite the bullish move. This is the third such attempt in as many day's .
  • Same should be said about the 20 DAY MOVING AVERAGE. Dow jones comes close to the moving average but not able to close above the moving average.
  • If these levels are not take out quickly we may see another sell off to the lower end of the trading range.
  • SPY WITH A DESCENDING BROADENING WEDGE

  • SPY is trading near the resistance level of 120.39
  • An up move will be possible on a breakout above 120.39.
  • Today's morning GAP is yet to be filled. So unless SPY decides to breakout above 120.39 Chances of a correction from here is very likely.

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