January 20, 2011
TREND LINE SUPPORT
- ES has formed a bearish engulfing pattern in its daily chart.
- Now Bears should try to break the trend line drawn in daily chart for extending their gains.
- Getting support on the trend line will give hope for the bulls to extend the primary trend.
- Nifty Futures hour chart is showing a descending triangle
- This pattern is a bearish one
- But considering the oversold status of nifty this may breakout on the upside too.
- One has to wait till price break the resistance or support line for taking a trade.
- Day closing yesterday was above day low ema.
- If nifty close below 5 day low ema again we may test the 200 dma and break it.
- Fibonacci levels for the rise from 5350 to the recent high shows price breaking the golden ratio and is in between 78.6% and the golden ratio.
- If price does not go above 61.8% soon nifty will test 5560 levels which is the 78.6%
- Having said that stochastic and MACD in daily time frame is hinting of a reversal any time.
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