March 29, 2011

ES Broadening patterns

  • 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.

ES Hour chart analysis

  • Price in hour chart has gone below 50 hour moving average.
  • Slipping below 1302 may give a short entry.
  • Breaking above 1308 and 50 hour moving average will favor bulls.
  • 1296 and 200 hour moving average are the important support levels.

Nifty Futures Intraday update

  • MACD and price is showing negative divergence in 15 minutes chart.
  • But price has to confirm by giving a correction which has not happened yet.
  • If price continue to create higher high's Negative divergence will not be valid.

Nifty Daily Analysis

  • 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.

SPY Hour chart analysis

  • SPY Hour is consolidating above 200 hour moving average and the trend line.
  • If price continue to stay above the MA and the trend line an upside breakout will happen.
  • Price falling below 200 hour moving average and the trend line in hour chart may turn the short term trend in favor of bears.