- ES Hour chart with broadening patterns.
- First one gave an upside breakout.
- The current pattern will favor bulls if price starts to trade above 1317.50 level.
- The resistance line may not get cleared at one go. As in the first pattern look for a hit on the upper resistance line followed by a partial decline for going long.
March 29, 2011
- Nifty is overbought and at resistance level. But if price manage to close above 200 DMA the indicators has to stay overbought for some more time while nifty moves towards 5900.
- If the channel resistance around 5700 comes into play bears have a hope. But if that is to happen we will see one or two negative daily candles this week.
- So the best approach for those who does not have a position would be to watch the 200 DMA drama unfold and enter when the direction becomes clear.
- DOW JONES RESISTANCE LEVEL
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