February 22, 2011

  • Price in hour chart has fallen below its 50 hour moving average and the cloud.
  • If price sustains below the cloud we may get a sell on rise market soon.
  • But Price in daily chart is moving towards its 20 day moving average which may act as a support level. Market too looks oversold so we may get a bounce from this level. 
  • Bears will be stronger only below the 20 day moving average.

  • The golden ratio (61.8%) shown below has given good correction for bears.
  • ES Hour chart with fibonacci levels.
  • Price got resisted at the golden ratio(61.8%). If price breaks above 61.8% it will retest the recent high's again.
  • Price sustaining below 61.8% will favor bears.

  • ES Daily is shown with 20 day moving average.
  • Price has taken support exactly at the 20 day moving average.
  • Es in hour chart has fallen below 50 hour moving average.
  • 50 hour moving average may act as resistance. Price Breaking above 50 hour moving average will favor bulls again.

  • Bank Nifty has good resistance at 11150 levels as shown in the first chart.
  • Closing above this level will favor the bulls to take prices higher.
  • Price has violated the descending channel which is an encouraging sign for the bulls. But if the resistances are not taken out on time we may see price retesting the broken line before moving up again. 
  • Bank nifty daily chart is showing a death cross (50 dma below 200 dma) which is a bearish pattern. But this cross takes place after significant correction, So a rally cannot be ruled out from here.
  • Things will favor bears only if price continue to remain below 50 and 200 dma's.


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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