December 1, 2010

  • Ichimoku cloud in four hour time frame.
  • Cloud in four hour time frame has given resistance till now.
  • Price has broken and is trading above the cloud. If the day closes above the cloud it will confirm a short term trend reversal.
CHART-II
  • Gold crossed 1400 as discussed in the below chart.
  • If Price sustains above 1400 Gold may test the all time high(1424) again.
CHART-I
  • Gold if sustains above 1387 will give a rally to 1400.
  • Dropping below 1380 and 1376 will be negative and may attract selling.
  • Dow Jones daily chart with falling wedge breakout.
  • Chart is showing resistance at 11210.
  • Breaking above it and closing above this level will favor bulls for resuming the up trend.
  • Getting resisted at this level will attract selling again.
  • ES Daily chart with price breakout above the resistance line.
  • But price should sustain above 1197and 1204 for this up move to last longer.
  • Things will favor bulls if price closes above 1197 or 1204.
  • Getting resisted near 1197 will attract selling.

  • Price is trading near the resistance line of the falling wedge pattern in dow jones futures.
  • Price is approaching the 38.2% and 50% Fibonacci levels which may also act as resistance levels.
  • Up move can continue only if these two Fibonacci resistance levels are taken out. That also means a breakout from the falling wedge pattern.
  • DOW JONES ANALYSIS AFTER CLOSING BELL
  • Nifty Futures four hour chart with resistance lines.
  • For nifty to continue this upward momentum it should cross the black trend line and the resistance at 5975 area.
  • Looking at the resistance around 5975 area i feel a daily close above this level is what's required for a sustained up move to happen
  • The falling wedge and the descending channel has given price action in favor of the bulls.
  • But as shown in the 3rd chart the Fib levels of 38.2% to 61.8% are good resistance areas.
  • 4th chart shows 20 and 50 Day Moving Average doing a bearish cross. But Nifty is getting support from 100 DMA which has to break for the bearish cross to work.
  • DOW JONES EOD ANALYSIS

  • Dow jones closes below 50 DMA once again. 
  • Bulls may try to find support below 50 DMA for an up move.
  • If yesterday's low is not broken this week, we may see a bounce from here.
  • Price is showing a falling wedge pattern which is a bullish reversal pattern. But breaking the recent low would result in continuation of the trend and an invalid pattern which will work in favor of the bears.
  • S&P 500 Thirty minutes chart in a triangle pattern
  • Price is trading near the apex of the pattern.
  • Breakout from this pattern can give good direction if the levels mentioned in the chart are taken out.
  • Good upward momentum above 1190. Breaking below 1180 will favor bears.

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