- Dow Jones 30 minutes chart is showing negative divergence with MACD and price.
- Price may still keep going up without giving major correction which shows the strength of this up move.
- Bigger correction may be seen only if 12330 level get broken.
- ES ABOVE RESISTANCE LINE
April 5, 2011
- Ascending triangle discussed below has given a breakout. Now for the bulls daily candle should close near the high of the day.
- GOLD Daily chart is showing an ascending triangle pattern.
- Support levels are getting higher on chart So price should breakout through the resistance level.
- Price closing and sustaining above 1442 level can give good upsides for Gold.
- Target for this pattern comes around 1500 level.
- ES SUPPORT AND RESISTANCE LINES
- Break of the resistance line discussed below has given good up move for ES.
- ES Four hour chart is showing a consolidation pattern.
- Price is near apex of a triangle like pattern. Breakout or breakdown from this pattern can give good direction in the short term.
- Long shadows of the last candles shows good support at lower levels.
- Nifty is about to hit its most important resistance line for this up move. Last two times when this trend line was hit we saw Black candles before the reversal took place. If a reversal has to take place bears shall form a black candle and may be followed by one or two day's of consolidation at this level without breaking above the resistance line.
- A combination of RSI and price has given good short trades from the resistance line. We are facing a similar Scenario But one has to keep in mind how nifty is approaching the resistance line this time. Bulls of nifty has the momentum so bears shall stand before this train and form a black candle for a good reversal trade.
- Don't try to short unless a reversal sign is shown.
- CRUDE OIL If continues its upward momentum may help the bears. CRUDE stands above the resistance line: CLICK HERE FOR THE CHART
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