December 24, 2010

  • The breakout candle is showing good momentum.
  • Now real strength will be visible only if it manages to clear the recent high.
  • Break and closing the day above the recent high will be positive.
  • MCLEOD RUSSEL CHART ANALYSIS

  • MCLEOD RUSSEL is forming a bullish engulfing pattern in weekly chart which will be confirmed with today's closing price.
  • Stock has taken support at its 78.6% Retrace of its fall from 311 to 165.
  • Resistance level is at 220 which is the 61.8% Fib level of the same fall mentioned above. Closing above 220 can lift the stock to 238 levels.
  • Getting resisted at 220 will be negative.
  • The range of nifty getting narrow as shown in the weekly chart. 
  • This consolidation should give direction today or next week. As price is close to the apex of the pattern it will give good direction soon.
  • Nifty tried to breakdown below the support line but came back to close within the range.
  • INTRADAY PATTERNS AT WORK (DESCENDING TRIANGLE OF S&P 500)


CHART-II
  • Descending triangle has given a breakdown.
CHART-I
  • SPX 5 Minutes chart with a descending triangle pattern.

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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