February 25, 2011

CHART-II
CHART-I
 
  • Dow Jones has managed to pull back above its 200 hour moving average.
  • CCI indicator shows positive divergence yesterday which has given an up move for Dow.
  • If price sustains above 200 hour moving average we may see the rally continue up to the 50 hour moving average.
  • Price closing below 200 hour moving average will strengthen the bears again.
  • Positive divergence was discussed yesterday IN THIS POST

  • ES Hour chart is trying for a pull back, But price should remain above the band of 1309 - 1312 for a meaningful up move to happen.
  • Price falling below 1309 will favor bears.
  • Price is trying to break above the 50 hour moving average and the cloud. Real strength for bulls could emerge once price closes and sustain  above the cloud.
  • Price if falls below the cloud again will give a good trade for the bears.
  • Dow Jones Positive Divergence CLICK HERE
  • Nifty is moving away from its 20 day moving average.
  • Break of the recent low will take nifty below 5000 levels.
  • Nifty is developing a similar type of consolidation pattern in daily chart, According to this pattern we may get support near the previous lows.
  • Dow Jones is trading below its 200 hour moving average.
  • Distance between 50 and 200 hour moving average is reducing which is a real concern for the long term bull.
  • Price and CCI is indicating a positive divergence in the making But divergences to work needs the help of price. It is looking very oversold so expecting a relief rally soon towards the 200 hour moving average.
  • SPY SUPPORT AND RESISTANCE LEVELS

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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