February 23, 2011

  • SPY hour chart is breaking all crucial levels in favor of bears.
  • Price has broken both 50 hour and 200 hour moving average.
  • Bears will be in total control if price remains below 200 hour moving average.
  • Fib levels shows price near 61.8% level Break below this level will fill the gap near 128 levels.
  • SPY 4 Hour chart near important support level.
  • 50 period moving average in four hour chart has held when spy fell last time.
  • This time too price is trying to form a basing formation.
  • So more pain for bulls only if price sustains below this moving average.

  • First chart is ES daily time frame with channel formation.
  • Price if continue to sustain below the black line then price will hit the support line of the channel.
  • Important support level shown in daily time frame is between 1294 - 1296.

  • NF has support near 5430 level which is the 38.2% retrace level. Price closing below this level will favor bears.
  • As seen in the chart this place between 23.6% and 38.2% is not allowing price to move away from it. So a daily close outside this range may give direction for future.
  • Nifty futures range in hour chart.
  • This 200 points range should be resolved for a bigger move to unfold.
  • Trend lines drawn inside the range may give direction for the intraday moves.
  • Nifty weekly chart shown with the trend line which can give support for the index in case of a correction. Breaking the trend line will favor the bears.
  • An inverted head and shoulders possibility was shown on monday. Now bears are also putting together a good continuation pattern. If price breaks below 5400 it may confirm a bear flag breakdown which can extend gains for bears.
  • So this one can go either way, lets watch the levels 5400 and 5635


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.


Blog Archive

Powered by Blogger.

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