December 23, 2010

  • SPY 5 minutes chart with the narrow range.
  • Price has been in a range of 125.50 to 125.82 from yesterday.
  • Violation of this range may give direction for the next move. Safer trade would be an upside breakout considering the larger trend of the market.

  • ES Hour chart with 50 hour moving average and raising support line.
  • Today's correction may drop price to 50 hour moving average.
  • Break of 50 hour Moving average may find support at the raising support line.
  • So 1251 and 1249 levels can act as support.

  • Nifty Futures 30 minutes chart with Fibonacci levels.
  • Nifty Futures not able to break above 50% Fib level of yesterday's fall.
  • Break above 50% level may give an up move for futures.
  • EURUSD may end correction near 78.6% again. 
  • Price is forming a falling wedge which is a bullish reversal pattern.
  • Breaking the resistance line will be positive and should take out the dotted resistance line for a meaningful up move to happen.
  • Breaking the support line will be negative but may find support near 78.6% Fibonacci level
  • Japanese Yen looks weak against dollar. 
  • USDJPY gave good up move past few weeks from 80 levels to 84.
  • Pair was not able to sustain above 84.40 has given a negative break today.
  • If it trades below 82 we may see large correction for this pair
  • Nifty Futures is trading near the support line of a possible triangle in 30 minutes chart.
  • An up move if happens will target the resistance line for today.
  • Break of the support line will be negative and will target 5960 NF Initially. Sustaining below 5960 can give good correction.
  • Nifty is getting resisted at 50 DMA. We had a bearish cross of 20 below 50 recently and nifty rallied twice to this area and found resistance there. I feel nifty will breakout on the next attempt.
  • Breaking below the support line will be negative and 20 DMA may act as support in this case.


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"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