February 2, 2011

  • Gold hour chart is forming an inverted head and shoulders formation in hour chart.
  • Price should sustain above 1348 for bigger up move to happen.
  • Those who try to go long should also note that price is trading below 50 day and 20 day moving average. Price closing above 20 day moving average will favour a gold bull.
  • ES HOUR CHART ANALYSIS

  • First chart is ES Hour time frame which shows a classic up trend breakout possibility. Sideways movement and an upside breakout after hitting the trend line. Break above 1305.75 will lead to continuation of the trend. Price breaking below 1298 will favour bears.
  • Four hour time frame shows price getting resisted at a trend line. Price not sustaining above this line may result in a sell off.
  • BIDU TRIANGLE BREAKOUT

CHART - III
  • Day range resolves in favour of bears
  • GAP is faded
CHART-II
  • Price not sustaining above day high.
  • Today's range is yet to be resolved.
CHART-I
  • Nifty Futures 5 minutes chart with today's range from 5450 - 5504
  • Break of 5450 may lead to fading of the GAP mentioned in the chart.
  • Support levels for today are 5450 and below that it is near 5411.
  • Break of 5411 may take SPOT to 5350.
  • TATA MOTORS ANALYSIS
  • Tata motors weekly chart shows price approaching the weekly trend line which may give support for the stock
  • Price has broken and important support level in daily chart which was between 1130 - 1150. So if a rally happens this area will act as stiff resistance.
  • Price has moved well below 50 DMA and is moving towards 200 DMA. Bulls of this stock may expect a bounce from 200 DMA. 
  • NIFTY DAILY ANALYSIS

  • Nifty has given another bearish engulfing pattern in daily chart. In a normal situation a bearish engulfing pattern at the bottom of  a trend may not be effective. But nifty has been in continuous selling mode with no reversal in sight. So this pattern may help it to extend the bearish rally.
  • But there are one or two factors that might keep the bulls interested.
  • Stochastic has been flat for sometime now while the index has been falling. At some point this divergence should give a bounce. So this might happen now or from near 5350 level.
  • 5350 - 5400 is the next level that may give some hope for the bulls.
  • Bidu has given a breakout from the consolidation pattern in which the stock was trading in.
  • Breakout has left a GAP in the chart. 
  • If the GAP ends up as  a runaway GAP the target for the breakout can be achieved easily. Target for this consolidation pattern comes at around 128.
  • If the GAP starts to fade then breakout will be in trouble.
  • Dow Jones violates the resistance level of 11970.
  • If price sustains above 12000 index may target 12200 in the short term.
  • Falling below 11970 will be negative.

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