- Cisco is approaching weekly resistance line and weekly ichimoku cloud.
- Daily chart is looking very bullish with 200 and 50 Day SMA about to do a golden cross.
- Price may try to shakeout the week bulls before the moving average cross over So the weekly resistance levels might come into play here.
- Bulls will be stronger if price does not get resisted near the weekly resistance line and cloud.
October 31, 2011
- ES is giving some relief for bears as of now. But the trend lines and the 50 Period SMA of four hour chart may give support for taking it up again.
- For bears the close below 50 Period SMA shown in the second chart should be convincing for a bigger fall to happen. Dip towards this level has taken support 3 times in the past. We have to see how price reacts from this level when it gets there.
- S&P 500 WEEKEND UPDATE
- Infosys is testing a resistance line in weekly chart.
- Price is also testing its month high ema.
- For bulls price should do a close above month High EMA for continuing this up move.
- Daily charts are showing overbought stochastic readings. But MACD is still in buy mode with Some negative divergence.
- Another important thing to track for IT stock is the movement of USDINR. I have done an analysis on the trend of USDINR today: CLICK HERE TO SEE USDINR TREND UPDATE
- NIFTY WEEKEND UPDATE
October 30, 2011
- From resistance lines, Month High EMA to Ichimoku cloud everything is showing resistances till 5550 levels. But it is suggested to wait till one sees weakness before going short.
- Bearish candles in daily chart after hitting the resistance line will be a safe place to short.
- S&P 500 WEEKEND UPDATE
- Multiple resistance levels were this up move can end are shown. Price momentum for now is with the bulls. And the longer they stay above the 200 Day SMA the stronger they become.
- Although the risk reward ratio favors a sell here, It will be foolish to fight against the trend until we see some weakness. At these levels Daily close below 200 SMA will be the first sign of weakness.
October 28, 2011
October 27, 2011
- ES Four hour is moving up with negative divergence.
- Price and MACD is diverging.
- Price may hit the resistance line once more before the correction can start. A false spike above the resistance line is also possible.
- Divergence need price confirmation before one can go short. So if price sustains above the resistance line then the divergence will vanish.
- Wedge has broken the support line. Price is also staying below 200 Day SMA. Daily candles closing below 200 SMA will favor a bearish trade now.
- US Dollar Four hour chart is forming a falling wedge pattern
- Falling wedge is bullish reversal pattern So price need to break the falling resistance line for USD to move up which means Stocks might start to fall.
- Price breaking the lower boundary will invalidate or reduced the credibility of this pattern.
October 26, 2011
- ES Four hour chart with 50 period Moving average.
- Price has given a pull back from this moving average twice during this up move.
- Price is testing the moving average again. Higher low Higher High structure is not yet violated. Breaking the last swing low will change things in favor of bears.
- GOLD NEAR 50 DAY SMA
- Nifty weekly candle is testing its 20 week moving average or the Middle Bollinger band. A convincing close above this level can extend this up move. On the contrary if the weekly candle closes below 20 Week SMA we may see some bearishness.
- Daily chart too has resistances in the form of 100 SMA and the GAP. GAP closes at 5323.
- GOLD DAILY CHART ANALYSIS
October 25, 2011
- ES Daily chart shows price getting resisted near previous support area. Daily candles are not able to close above this line.
- For bulls price has to close the day above this level for continuing the up move which is going to be tough for bulls.
- Four hour chart shows the up trend line and Horizontal support line which are important for bulls to hold.
- CRUDE OIL BREAKOUT
- SPX is near previous support level which may act as resistance.
- 50 Week moving average is near 1266 levels.
- Four hour time frame has started to diverge. No trend line break yet which might trigger a correction.
- So we may see a correction from 1260 - 1270 levels.
- CRUDE OIL ABOVE RESISTANCE LEVELS