November 27, 2010

SPY Weekend update

SPY DAILY CHART
WEEKLY CHART
  • SPY Daily chart has a triangle like pattern with price trading near the apex of the pattern.
  • Breakout of the pattern should take out 120 for favouring bulls and breaking 117 will favour bears.
  • Weekly chart shows similar price action at the top. Price breaking the horizontal support at 114 and the weekly supporting trend line will give large correction.
  • DOW JONES WEEKEND UPDATE

FLAG of CNX IT

  • The Title should have been BULL FLAG of CNX IT. But considering the bearishness of Nifty and the Global markets I am being cautious.
  • This pattern can act as a descending channel which takes the IT stocks down or can at as a Bull Flag which reverses the trend.
  • The second chart shows how this particular index finding support just below 50 DMA. If price manages to close above 50 DMA chances of an upside breakout will increase.
  • Important support for the index is at 6482. and Important resistance for the Bull Flag to work is at 6891.

DOW JONES Weekend update

  • Dow Jones four hour chart shows the cloud acting as resistance in this time frame. Price tried to go above the cloud several times but met with resistance from the ichimoku cloud. 
  • Daily chart is shown with 20 and 50 DMA's. 
  • 20 DMA acted as resistance this week and 50 DMA gave support at lower levels.
  • Weekly chart is shown with the weekly trend support and resistance. Main support on weekly chart is between 10710 - 10730, Resistance is between 11240 - 11260 levels.
  • For next week the hourly chart is showing a range of  10970 - 11200..