April 29, 2011

  • SPY Hour chart with possible target for this breakout.
  • Length of the range is about 4.50 points in hour chart.
  • Breakout point is at 134 So adding 4.50 with 134 is giving a projected target of 138.50.
  • Price is respecting a steep trend line in hour chart. We may get a retrace before touching 138.50. If retrace maintains above 134 price will hit 138.50 during next week.
  • ES Hour is trending up inside a channel.
  • First violation of the channel may result in a sideways move and followed by another up move.
  • Bulls are safe if price moves within the Ascending channel.
  • Trend of hour will be safe above the cloud. Price sailing smooth above the cloud.
  • DOW JONES MONTHLY CHART LOOKS BULLISH
  • Detaild analysis will be done over weekend.
  • This one is to show the respect traders have for 200 DMA. Last time we had a bounce trade from this level. Again Nifty has closed exactly at 200 DMA.
  • A long trade with Low risk High reward  is possible from here.  
  • Nifty Week chart is showing Negative price action. Last chart shows price getting resisted by the Golden ratio. This is the 4th weekly candle which is attempting to close above this ratio But bulls it seems will not be able to do this time too.
  • Price has broken 20 day moving average and by the looks of things it will test 200 DMA shortly. On weekly closing basis Nifty may get support at 20 week moving average. Breaking 20 week moving average on closing basis will favor positional bears.
  • DOW JONES MONTHLY CHART LOOKS BULLISH
  • Dow Jones month chart with Fib levels for the fall from 14198 to 6469.
  • Price has retraced  78.6%  of the fall. 
  • Probability of a monthly close above 78.6% is high which is good news for bulls.
  • Sustaining above these levels Dow can complete 100% retrace of the fall.

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"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