- SPY 30 minutes chart has a broadening pattern.
- Price got resisted near the resistance line of the broadening pattern today.
- Further up move can only happen if price breaks above the broadening pattern.
- If it continues to get resisted around this level without a breakout, we may see a correction in favor of bears.
- SPY has good resistance at the 132 - 133 level as shown IN THIS POST.
February 11, 2011
- Nifty has given a spinning top candlestick pattern. Lets see if this one can give a relief rally for bulls.
- Price is trading near the support line of the descending channel so we may get a pause in selling. But intraday up moves can still be sold off because of the strong down trend.
- We may get a death cross in nifty if selling continues. Death cross happens when 50 dma gives a bearish cross below 200 dma this happens in bear market. But there were occasions when these crosses resulted in an opposite directional move. One example is the last death cross happened in US markets which resulted in big up move.
- 20 dma has already crossed below 200 dma.
- Nifty has not closed above 5 day high ema for a long time now.
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