May 6, 2011

  • Amazon 30 Minutes chart in a triangle pattern.
  • Price in daily chart gave a big breakout recently. So an upper breakout will be an easy long trade to take.
  • Since it is a triangle beware of whipsaws.
  • SLV Hour may give a green candle. But hour chart has immediate resistances in the form of a GAP that was formed yesterday. GAP is between 36.89 - 38.01.
  • Then 10 bar and 20 bar Hourly moving averages are acting like strong down trend lines. Unless these levels are taken out by bulls a Meaningful pull back is not possible.

  • ES One hour chart has broken above its 50 Hour moving average.
  • But price may find resistance near its 200 Hour moving average.
  • So this area of 1348 - 1349 will be crucial for bulls to cross and sustain above.
  • USO has broken its 50 day moving average and closed near day's low.
  • Momentum may take price close to its 200 day moving average near 37 levels.
  • Weekly chart shows trend line support between 35 - 36 level.
  • Week chart shows USO in a broad trading range from 22 - 45 level with 32 as the important support resistance level.
  • 50% Fib level is acting as resistance.
  • Up moves will be possible only on breakout above this level.
  • Nifty Week shows price approaching the support line of the triangle formation in weekly chart. For a perfect touch on the support line to happen nifty should break 5400.
  • Stochastic in daily chart and other indicators are showing oversold status which can give a trading bounce. But if this is a bigger trending market then the oversold indicators will stay oversold and Nifty will continue to move down.
  • Nifty week line chart shows good support between 5300 -5450 level.
  • SLV has closed way below its 50 day moving average.
  • Next important support lies near 29 Level.
  • Supports in a bear market may not act meaningfully. Price is tumbling down, Hour chart shows the vertical fall clearly.
  • So unless price decides to consolidate near the support levels this fall will continue. We had the 6th Red candle in daily chart in a row and this was a big one which closed near days low. 
  • Conclusion More pain for bulls of SLV.
  • EURUSD pair has given a breakdown from the range it was trading in hour chart. Price has also fallen below 200 Hour moving average. These two support levels may act as resistance levels now.
  • Daily chart shows good correction, But Price has not violated the trend line yet. Unless price violates the trend line this can be considered as a correction in a bull market.


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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