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.
  • SLV ANALYSIS AFTER CLOSING BELL

  • 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.
  • SLV ANALYSIS AFTER CLOSING BELL
CHART-III
CHART-II
CHART-I - DAILY TIME FRAME
  • 50% Fib level is acting as resistance.
  • Up moves will be possible only on breakout above this level.
  • GOLDEN RATIO POSTED YESTERDAY
  • 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.
  • EURUSD CORRECTION IN A BULL MARKET
  • 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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All the contents of niftychartsandpatterns are for educational purposes only and are not Investment Advice or recommendations offered to any person(s) with respect to the purchase or sale of the stocks / futures. Niftychartsandpatterns shall not be held responsible for the actions of individuals, parties, or corporations taken in response to the ideas, thoughts, concepts or information presented in this blog. Hence all the visitors are requested to apply their prudence and consult their financial or investment adviser before acting on any of the Ideas in this blog.

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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