June 30, 2011

  • SPY has moved above 100 Day moving average.
  • Price also violated the 50% Fib level for 137 to 126 level.
  • Day closing above this level will favor bulls to extend the gains.
CHART-II
  • Wedge break on the upside. 
  • Stay long till weakness is seen.
CHART-I
  • ES 30 Minutes chart with rising wedge pattern.
  • Bearishness will be confirmed if price stays below 50 period moving average shown in the second chart.
  • Price sustaining above 50 Period moving average will continue to favor bulls.
  • Price hits the top of the triangle pattern which was shown earlier in this post.
  • Now it is likely to head down towards 1.41 levels in the coming days.
  • Nifty spot with 30 Minutes chart and Ichimoku cloud.
  • Price is still staying above the cloud. Price went above it after the range breakout near 5300 level.
  • Up trend will stay intact as long as price does not dip below the cloud.
  • First chart shows the stochastic and trend line combination for going short. 
  • It seems we will get one more short trade from this down trend line shortly. 
  • This short trade may not get triggered if nifty decides to give a bigger breakout. But when price hits the trend line with an already overbought stochastic the risk reward ration will favor a short trade. So have a small stop loss for this upcoming short sell.
  • Second chart shows a positive candlestick near 5604 Past four attempts when nifty got rejected here price showed negative candles. This time it looks different and price momentum the way it came back from 5195 to this level in a short span of time shows the strength of bulls. So they may have enough of momentum to go above 5604 this time. 
  • TREND LINE OF DOW JONES

June 29, 2011

  • Dow jones four hour chart with the down trend line.
  • Price is testing this trend line. If bulls are to extend gains they have to break this trend line convincingly. 
  • Price consolidation here may result in a fall.
  • SPY 4 Hour chart with the cloud
  • Trend will turn in favor of bulls completely only if they manage to break the cloud and stay above it.
  • Till that happen bears has the option of selling this rally.
  • Price has violated the resistance level of 129.80 level.
  • Now for bulls price should stay and close the day above 129.80 .
  • Price falling below this level will favor bears
  • CISCO has given a Grave Stone Doji pattern.
  • It's a Bullish reversal pattern. But needs price confirmation. In this case price movement is looking good for the bulls. Weekly close above the last weeks high will be good for bulls.
  • Second chart too shows a bullish pattern. Break of the resistance line can give a rally.
  • Price breaking below the grave stone Doji will favor bears
  • Nifty Knocks 5604 one more time.
  • We have to see the price action here. Only a daily close above this level will confirm strength.
  • ABOVE BROADENING PATTERN WAS SUGGESTED IN THIS POST
  • Nifty moving up towards the resistance level of 5604 with an unfilled GAP.
  • So if price struggles near 5604 level we may see a pull back towards the GAP.
  • NIFTY WEEKLY CHART
  • Price approaching its weekly resistance level.
  • Recent attempts to stay above 20 week moving average has failed.
  • So a bigger breakout cannot be seen unless price closes above 20 week moving average.
  • Second chart shows stochastic turning in favor of bulls. Now if the corrections are not large price may continue to move up. 
  • Lets wait and see how price reacts near 20 week moving average. 
  • SPY Hour chart with the selling zone.
  • 129.60 - 129.80 level is acting as resistance in hour chart.
  • Daily close above this level may push price above this zone. Unable to cross this level will result in selling.

June 28, 2011

  • ES hour chart with resistance levels
  • 1286 and 1293 are the resistance levels
  • 1276 will act as the immediate support
  • ES Hour has given a breakout above the resistance line in hour chart.
  • Price falling below the marked area will be negative.
  • 1286 level may act as resistance.
  • ONGC's Head and shoulders showed how a failed pattern can give a fast move in the opposite direction.
  • After breaking the neck line there was no big breakdown. The Long Shadows of the daily candles gave a hint of the reversal.
  • When price reversed above the neck line it was time to go long and longs gave good profits.
  • So when a pattern fails have plans to reverse your trade.
  • Long Shadows often shows reversals
BANK NIFTY DAILY LINE CHART
SBI DAILY CHART
  • Bank Nifty is getting into a resistance zone.
  • As shown in the first chart price has reversed many times from 11160 level on a closing basis.
  • Around 11300 price will also hit the Down Trend line.
  • So for a bigger breakout to happen price should sustain and close above 11300 Level.
  • SBI too is approaching resistance zone. So if Bank Nifty is to make a breakout Then SBI has to stay above 2353 and should make an attempt towards its 50 DMA.

June 27, 2011

  • ES four hour chart with support and resistance lines.
  • Price is approaching a resistance line as shown in four hour time frame.
  • Getting resisted here will take ES towards 1260 levels again. 
  • Violation of the resistance line will favor bulls.
  • SLV Daily time frame is testing an important support level.
  • Price closing below 32.76 will favor bears.
  • Price continue to stay below 50 and 20 day moving averages.
  • SLV will continue to trend down if it stays below 20 DMA and below 32.76 level.
  • S&P 500 WEEKEND UPDATE
  • EURUSD Daily chart is near the support line of the triangle pattern
  • If price gets support here it may start to move up towards the resistance line of the triangle.
  • For now price is below the 20 week moving average which is negative for the pair.
  • S&P 500 WEEKEND UPDATE
  • SBI is showing good upside momentum
  • Price may pause at 2356 level which was the recent swing high.
  • Bigger up moves will be possible only on breaking and closing above 2356 level.
  • Tata motors May form a bottom formation at the current levels.
  • If the Golden ratio and Hammer holds we may see the stock moving up soon.
  • One can wait for Price to close above 20 day moving average to buy the stock.
  • NIFTY WEEKEND UPDATE

June 26, 2011

  • First chart is the weekly time frame with price near support area and near the weekly supporting trend line.
  • Daily chart shows price closing in on 200 DMA.
  • Seeing the above charts i feel the weekly trend line and 200 DMA is likely to hold the index and a bounce from these levels is possible.
  • S&P 500 WEEKEND UPDATE

June 25, 2011

  • First chart shows SPX Weekly wedge, Price yet to hit the support line of the wedge. Current correction in weekly chart may get over only after price hitting the support line of the wedge. Bigger correction may follow if the wedge gets broken here.
  • 2nd chart shows price with 200 DMA and the support level of 1250. Break of this Moving Average will push price down to 1250 level. So all this action may happen near the support line of the wedge and an up move may start from this area. 
  • For Bears Wedge and 200 DMA Breakdown will be a great event. But on seeing the price action it looks like 1250 may hold in the medium term.
  • SPY 5 MINUTES CHART WITH SUPPORT RESISTANCE LEVELS
  • All Indications are that this up move may continue. 
  • Next important resistance is at the 20 week moving average and 5604 level. 20 Week moving average is near 5560 level.
  • Look at the last chart the weekly Bollinger band, Price hits and reverses perfectly. 
  • We saw the Bullish Engulfing But to be frank such a big up move was not expected. The bulls were swept away at least for one day. Bears may get their chance between 5560 - 5604 level.
  • Weekly chart is showing a possible false spike out of a consolidation pattern this can be very negative for bears as false moves tend to give vicious moves in the opposite direction.
  • Daily MACD and STOCHASTIC shows chances of this up move continuing for a while.
  • S&P 500 WEEKEND UPDATE

June 24, 2011

  • SPY 5 Minutes chart with support and resistance levels.
  • Price will favor bulls if it stays above 127.49 and bulls will target 128.37 levels.
  • Falling below 126.62 will be negative and chances are 126.19 will be tested.
  • This down move of Crude Oil will target 85 - 86 level.
  • Weekly chart shows support between 85 - 86 level.
  • This level acted as resistance before and correction to this area is giving support for crude oil. Unable to hold this level will be very negative for crude prices.
BROADENING PATTERN 
UPDATED CHART
  • Broadening pattern of nifty has given good result for bulls. Nifty's Bulls got good help from the bullish engulfing pattern formed yesterday.
  • At this pace nifty should reach the previous resistance of 5604 soon.
  • NIFTY BROADENING PATTERN
  • NIFTY BULLISH ENGULFING

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