May 31, 2011

CHART-II
  • Price gave a correction as discussed in the below chart.
  • Now it is near 50 Hour moving average and the channel support line. So an up move is possible from this level.
  • Bears will become stronger if they manage to break the channel.
CHART-I
  • ES Hour with the Ascending channel.
  • Price at 1343.75 hits the channel top. We may see a correction But things will favor bulls till price remains in the channel.
  • 1334 is an important support level for today.
  • ES BREAKOUT
  • Daily chart shows Two more resistance for bulls to break.
  • Closing above 5560 will target 5605 and then the 50 day moving average.
  • Nifty did a pause day yesterday at its 20 day moving average. So close above this level will help bulls to extend gains.
  • Closing above 20 DMA Price will target 5550 level were the resistance for index is strong.
  • Weekly chart's Triangle is looking good. After finding support at the triangles support line with the help of a bullish hammer Price looks like it is ready for an up move towards the resistance line of the triangle and if that succeeds 5700 may be achieved.
  • For bears Price has to break 5348 - 5370 support level on closing basis.
  • S&P 500 Futures Four hour Chart

May 30, 2011

CHART-II
  • ES Has given a breakout of the channel as discussed below.
  • Now price sustaining above 1334 and 50 Hour moving average will extend gains for Bulls.
CHART-I
  • ES four hour chart with resistance line. Last 3 times when price hit this trend line the Price action confirmed easy shorting opportunities.
  • But now price is trying to violate the resistance line so a breakout may be on the cards.
  • Price in hour chart is staying above 50 Hour moving average. So A fall below 50 Hour moving average may give a deeper fall. As long as price stays above 50 Hour moving average a breakout is possible.
  • SPY WEEKEND UPDATE
  • NIFTY has given a breakout from the triangle pattern
  • Bulls can add momentum only if they sustain above yesterdays high 5509.
CHART-I
  • 15 Minutes chart with a triangle pattern.
  • Trend in shorter time frame is favoring bulls So an upper breakout will help bulls extend gains
  • But being a triangle this may give a breakdown too. 

May 29, 2011

  • First chart shows price closing above 50 Day Moving Average.
  • But Bears will be happy that the price closed inside the descending channel pattern.
  • 2nd chart shows price consolidation in a triangle like pattern and this will soon give good direction.
  • 3rd chart shows Weekly chart with 20 week moving average. Price is refusing to close below 20 week moving average which will keep bulls happy.
  • BIDU GO LONG ABOVE 20 DMA
  • Hindalco had a good close to the weekend. 
  • Price broke and close above the trend line in daily chart. MACD is looking positive and may give a buy signal. 
  • Price will move up if sustains above 20 day moving average.
  • Cloud resistance is near 207 and then the weekly down trend line will also act as resistance.
  • Above bullish view valid only if price sustains above 20 day moving average.
  • NIFTY WEEKEND UPDATE

May 28, 2011

  • First chart shows price taking support on a trend line in daily chart and getting out of the descending channel pattern. MACD is about to give a buy signal, If you see the recent long and short signals of MACD in daily time frame has worked quite well.
  • So it will be safe to go long above 20 day moving average.
  • Last chart is the weekly time frame which also favors bulls.
  • Week will turn negative only on a weekly close below 129.58
  • QQQ Short term is looking bullish. 
  • Price having taken support at the support line of the consolidation pattern can move up to 59.30 level next week provided it does not fall below 56.57.
  • Stochastic indicator in daily chart is coming up from oversold level which might help bulls to continue the momentum of last three days.
  • So one can try a long trade with 56.57 as stop loss.
  • Price has closed near 50 DMA and in weekly chart at 20 Week moving average. So look for a daily close above 50 DMA for going long. If price gets resisted at 50 DMA we may see a fall.
  • Nifty has formed a Bullish candle. The long shadow shows buying at lower level. This may continue into the beginning of next week.
  • Price has closed above the weekly trend line shown in earlier posts.
  • MACD Bars and price in daily chart has been diverging for quite some time now and has resulted in a bullish breakout. Crossing 5490 - 5500 and closing above it will take nifty to 5600 and above.
  • But Positional bears will be safe as long as price remains below 20 week and 50 week moving average. Bearish cross too seems to be working in their favor. This bearishness may get changed if nifty trades above 5700 levels.

May 27, 2011

  • ES Four hour chart has hit the resistance line
  • For the bullishness to continue bulls should break the resistance line.
  • Now its looking like a low risk high reward short sell that's developing Unless price decides to breakout.
  • One can wait for this four hour candle to close to confirm.
  • Price staying above the neckline of the resistance line will favor bulls. 
  • Rising 50 Hour moving average and the trend line shown in 2nd chart can also act as support levels.
  • This corrective up move will continue till the Trend line is valid.
  • MICRON TECHNOLOGY ANALYSIS
  • First chart shows a negative breakdown from a consolidation sideways channel.
  • Price is moving down in a descending channel and is approaching its 200 DMA. Break of 200 DMA will extend the correction.
  • 38.2% and 50% Fib levels in weekly chart is acting as support.
EOD UPDATE
  • Price Failed to stay above 5480 - 5490 level. So we have to see on monday if this level is achieved on closing basis or not.
  • Closing above 5490 can give at least 100 Points for bulls.
  • Above 5490 The resistance are 5517 and 5605. 
INTRADAY CHART
  • Nifty is filling the GAP between 5453 - 5479.
  • We have to see if the strength of bulls lasts above 5479. Daily candle closing above 5480 will favor bulls into next week.
  • Target for Inverted Head and shoulders pattern is approximately 5470 level.
  • So price should sustain above 5480 - 5490 level for Bullish momentum to continue
  • Nifty week may try to close above the trend line shown in the first chart.
  • So today's closing should happen above 5440 at least for price to stay above the trend line.
  • Daily is showing a descending channel. Closing above the resistance line of the channel may give a long trade.
  • EURUSD CHART ANALYSIS
  • Bank Nifty Weekly chart is pausing near the important level of 10430 - 10450. Price closing the week near this level can give an up move in the coming week towards the upper trend line shown in the chart. Price closing near the support level means it forms a descending triangle pattern which is bearish in the medium term. Lets see how the week closes.
  • Day is forming a falling wedge pattern. For the pattern to look good it should resist one more time on the upper trend line and fall towards the lower trend line and then give an upper breakout.
  • EURUSD CHART ANALYSIS

May 26, 2011

  • EURUSD is pausing at 20 Week Moving average.
  • Weekly candle closing below 20 Week Moving average may push price to the support line of the channel shown in the 2nd chart.
  • Bullish Structure in weekly chart will be intact as long as the channel is not violated.
  • First chart is the line chart of FOUR Hour time frame. Which shows lower high's and Lower lows's being formed the structure clearly favors bears. Every major rise is being sold off.
  • One hour chart is suggesting a possible bounce if the Right Shoulder of an inverted head and shoulders gets confirmed. Price should sustain above 50 Hour moving average for price to move in favor of bulls.
  • NFLX BULL FLAG BREAKOUT
  • Weekly Chart of NFLX shows a clear smooth up trend. Not challenged yet.
  • Day chart shows price breakout from a bull flag pattern. It also looks like a cup and handle pattern.
  • If the breakout does not fail. The medium term target for this up move is 280 levels. Price breaking and closing below 250 levels will negate the bullish view.
  • The broken support level may act as resistance for nifty.
  • Trend line from 5900 is also near by.
  • So a bigger move will be possible if nifty stays above these two crucial levels.
  • Not able to stay above 5403 level may result in a fall.
  • SBI is not giving any sign of relief for bulls. No daily or weekly reversal candles yet.
  • RSI as seen in the last chart is reaching extreme levels which might give a reversal.
  • But the target for the consolidation breakdown is near 2070 levels. Price might get there after a bounce. 
  • One more thing to note is the structure of the stock which has formed a lower high in daily time frame which is bearish in the medium term.

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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"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