February 28, 2011

  • ES Fibonacci levels shows price above the golden ratio(61.8%). If price sustains above this level we may see 1330 levels shortly. Breaking below 61.8% will be negative for the bulls.
  • Price sustaining above the cloud will favor bulls.
  • Hour chart shows an inverted H&S kind of breakout, for this to sustain 1320 level should be protected by the bulls.
  • DOW JONES WEEKEND UPDATE
  • Long term picture will favor bears as long as nifty trades below 50 week moving average.
  • We may see wild swings today because of the news. So it would be wise to trade based on closing values.
  • 5369 can be kept a the balance of power for bulls and bears. 
  • Closing above 5369 will favor bulls and break below 5177 will favor bears.
  • TATA MOTORS TREND LINE TOUCH
  • Dow Jones hour chart shows 12150 as a crucial level for bulls to cross. 
  • Fib level too shows 38.2% level coinciding with 12150 area. Price closing and sustaining above 38.2% may give another up move in the coming week.
  • Daily chart candlestick pattern shows bullish possibilities. Thursday's candle gave a long shadow which shows buying at lower levels This was followed by another positive candle which resulted in bullish engulfing pattern.
  • Now for the bullish engulfing pattern to work price need to trade above 20 day moving average. A convincing trade above 20 dma can take dow to 12230 levels.
  • 11980 level may act as support in the short term..
  • APPLE WEEKEND UPDATE

February 26, 2011

  • First chart is the daily chart of apple with 20 day moving average. 
  • Dips below 20 day moving average has been marked. Dips has not lasted too long. 
  • The effort of bears to sustain price below this moving average seems to be failing again. If price closes above 20 day moving average we will see yet another up move.
  • Important levels for bulls to cross and close above is 348.50.
  • Hour chart is filling a GAP if price closes above 50 hour moving average after filling the GAP things will favor bulls. Getting resisted at 50 hour moving average after filling the GAP may give a short trade in favor of bears. 
  • SPY RESISTANCE LEVELS

  • Tata motors touches the trend line in weekly chart.
  • Not only price touches the trend line it also touches the 200 day moving average.
  • We can see some action in the coming days. Price breaking below 200 dma will give good short trade.
  • For now 200 dma and the trend line has held. If price sustains above these important levels we may see good up move in the coming days.
  • Price in hour chart is fading the GAP.
  • 50 hour moving average is acting as resistance.
  • Price closing above 50 hour sma can take it up to 353 initially.
  • Sustaining below 50 hour moving average will result in a correction again.
  • SPY RESISTANCE LINES

  • 15 minutes chart of spy with resistance lines
  • Price closing above the blue resistance line will give 132.66 levels.
  • 132.66 area can act as resistance. If price manages to break and sustain above 132.66 Next target is around 133.80 levels.
  • For bears sustaining below the blue trend line can give a correction in their favor.

February 25, 2011

CHART-II
CHART-I
 
  • Dow Jones has managed to pull back above its 200 hour moving average.
  • CCI indicator shows positive divergence yesterday which has given an up move for Dow.
  • If price sustains above 200 hour moving average we may see the rally continue up to the 50 hour moving average.
  • Price closing below 200 hour moving average will strengthen the bears again.
  • Positive divergence was discussed yesterday IN THIS POST

  • ES Hour chart is trying for a pull back, But price should remain above the band of 1309 - 1312 for a meaningful up move to happen.
  • Price falling below 1309 will favor bears.
  • Price is trying to break above the 50 hour moving average and the cloud. Real strength for bulls could emerge once price closes and sustain  above the cloud.
  • Price if falls below the cloud again will give a good trade for the bears.
  • Dow Jones Positive Divergence CLICK HERE
  • Nifty is moving away from its 20 day moving average.
  • Break of the recent low will take nifty below 5000 levels.
  • Nifty is developing a similar type of consolidation pattern in daily chart, According to this pattern we may get support near the previous lows.
  • Dow Jones is trading below its 200 hour moving average.
  • Distance between 50 and 200 hour moving average is reducing which is a real concern for the long term bull.
  • Price and CCI is indicating a positive divergence in the making But divergences to work needs the help of price. It is looking very oversold so expecting a relief rally soon towards the 200 hour moving average.
  • SPY SUPPORT AND RESISTANCE LEVELS

February 24, 2011

  • First chart is the 15 minutes chart of SPY with support and resistance levels.
  • Move above 131.58 will favor bulls for an intraday up move.
  • Falling below 130.71 and 130.21 will give another down move.
  • 130.21 was the 61.8% Fib level were the correction stopped yesterday. So break of this level will target the GAP area as discussed in YESTERDAY'S POST.
  • ES Hour chart with Ichimoku cloud and 50 hour moving average.
  • Price is trending down below the cloud. Bulls will face stiff resistance until they close price above the cloud.
  • Hour time frame is a sell on rise market now. So 50 hour moving average will act as resistance.
  • Bulls should close above 1310 and 1320 for regaining strength. 
  • SPY HOUR CHART ANALYSIS

  • SBI has broken its 50 and 200 dma again. Price closed near the low of the day.
  • Price hits the resistance line shown in 2nd chart and turned negative.
  • 2565 may act as a minor support Breaking which price will hit 2480 level again.

February 23, 2011

  • SPY hour chart is breaking all crucial levels in favor of bears.
  • Price has broken both 50 hour and 200 hour moving average.
  • Bears will be in total control if price remains below 200 hour moving average.
  • Fib levels shows price near 61.8% level Break below this level will fill the gap near 128 levels.
  • SPY 4 Hour chart near important support level.
  • 50 period moving average in four hour chart has held when spy fell last time.
  • This time too price is trying to form a basing formation.
  • So more pain for bulls only if price sustains below this moving average.
  • APPLE WEEKEND UPDATE

  • First chart is ES daily time frame with channel formation.
  • Price if continue to sustain below the black line then price will hit the support line of the channel.
  • Important support level shown in daily time frame is between 1294 - 1296.
  • SPX CHART ANALYSIS

  • NF has support near 5430 level which is the 38.2% retrace level. Price closing below this level will favor bears.
  • As seen in the chart this place between 23.6% and 38.2% is not allowing price to move away from it. So a daily close outside this range may give direction for future.
  • Nifty futures range in hour chart.
  • This 200 points range should be resolved for a bigger move to unfold.
  • Trend lines drawn inside the range may give direction for the intraday moves.
  • Nifty weekly chart shown with the trend line which can give support for the index in case of a correction. Breaking the trend line will favor the bears.
  • An inverted head and shoulders possibility was shown on monday. Now bears are also putting together a good continuation pattern. If price breaks below 5400 it may confirm a bear flag breakdown which can extend gains for bears.
  • So this one can go either way, lets watch the levels 5400 and 5635
  • S&P 500 DAILY CHART ANALYSIS

February 22, 2011

SPX HOUR CHART
SPX DAILY CHART
  • Price in hour chart has fallen below its 50 hour moving average and the cloud.
  • If price sustains below the cloud we may get a sell on rise market soon.
  • But Price in daily chart is moving towards its 20 day moving average which may act as a support level. Market too looks oversold so we may get a bounce from this level. 
  • Bears will be stronger only below the 20 day moving average.
  • ES FIBONACCI LEVELS

CHART-2
  • The golden ratio (61.8%) shown below has given good correction for bears.
CHART-1
  • ES Hour chart with fibonacci levels.
  • Price got resisted at the golden ratio(61.8%). If price breaks above 61.8% it will retest the recent high's again.
  • Price sustaining below 61.8% will favor bears.
  • APPLE WEEKEND UPDATE

  • ES Daily is shown with 20 day moving average.
  • Price has taken support exactly at the 20 day moving average.
  • Es in hour chart has fallen below 50 hour moving average.
  • 50 hour moving average may act as resistance. Price Breaking above 50 hour moving average will favor bulls again.
  • IWM WEEKLY CHART ANALYSIS

  • Bank Nifty has good resistance at 11150 levels as shown in the first chart.
  • Closing above this level will favor the bulls to take prices higher.
  • Price has violated the descending channel which is an encouraging sign for the bulls. But if the resistances are not taken out on time we may see price retesting the broken line before moving up again. 
  • Bank nifty daily chart is showing a death cross (50 dma below 200 dma) which is a bearish pattern. But this cross takes place after significant correction, So a rally cannot be ruled out from here.
  • Things will favor bears only if price continue to remain below 50 and 200 dma's.

February 21, 2011

  • IWM Weekly chart with the channel formation.
  • Price is trading in the bullish part of the channel and heading towards the resistance line of the pattern.
  • Next major resistance is seen at 86.05.
  • above 86.05 price will hit the resistance line of the channel.
  • Price will favor bears only if it trades below the middle line of the channel formation.
  • APPLE WEEKEND UPDATE

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