October 31, 2011

  • 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.
  • Crude oil is showing resistance at 94.63 and Support between 89.60 - 90.40 levels.
  • Falling below 89.60 may take price towards the down trend line which was broken earlier.
MCX CRUDE OIL CHART 
  • Resistance at 4689 Support near 4332 levels.
  • 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
  • Last week's rally of silver failed to close above 50 Week SMA and 50% Fib retrace levels.
  • Now if hour continues to stay below 50 Hour sma we may see bears of Silver getting stronger.
  • 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

  • Copper is moving towards 3.8093 level which was the previous support, This level may act as resistance.
  • price is trying to stay above a down trend line. If successful then this up move will be extended.
  • Important support is at 3.4688
  • ES staying above 200 SMA will favor bulls. Bulls will be safe till daily candle closes below 200 SMA.
  • Four hour chart shows up trend line and Horizontal support line. Weakness will be visible only if price manage to break below these lines.
  • The earlier GAP of nifty of the down trend is not yet filled.
  • Today's GAP managed to open above and is sustaining above the earlier GAP.
  • We have to see if price does a retrace to partially fill the GAP or continue to move up towards the weekly resistance line.

October 27, 2011

  • Bulls of Crude oil should sustain above 94.63 levels for extending gains.
  • This level has given support many times as can be seen on the left side.
  • Breakout above this level may give 100 Levels for crude oil. Getting resisted here may attract selling.
  • S&P 500 Hits its 200 Day Moving average.
  • For this up move to continue price should close above this level.
  • Getting resisted here may give a correction.
  • Silver Resistance levels in weekly chart.
  • 50 Week sma and 50 % Fib retrace levels are at the same area. So this level will be tough to break for silver bulls.
  • ES NEGATIVE DIVERGENCE
CHART-II
CHART-I
  • 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.
CHART-II
  • 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.
CHART-I
  • 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

  • Gold having given a breakout above 20 SMA is moving towards its 50 Day Simple Moving Average.
  • Day closing above 50 SMA will add strength for the current up move.
  • Getting resisted here and giving bearish daily candles may result in a correction.

October 25, 2011

  • Hour up trend is not yet changed.
  • Price falling below the trend line and 50 Hour SMA will be warning signs for bulls.
  • Price sustaining below the cloud may lead to a sell off.
  • GOLD DAILY CHART ANALYSIS
  • Gold daily chart having breakout above 20 Day SMA is moving towards 1694 which is the upper end of the range in daily time frame.
  • 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
  • SBI was not able to stay above 50 Day Moving average, Was stopped exactly at the cloud too. With overbought stochastic if sustains below 1886 will attract more selling.
  • S&P 500 EOD ANALYSIS
  • 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
  • Crude oil has violated its resistance line in daily charts.
  • Sustaining and day closing above 90.51 levels will keep the bullishness intact.
  • closing below 89.60 will be negative for crude oil.

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