- Daily chart shows price near the support level which is 12430.
- Price closing below this level will favor bears.
- Getting support here and breaking the resistance line shown in first chart can be used to go long.
- Price is near 50 DMA and this Moving average has given good support for bulls in the recent past as shown in the chart. So for moving down Bears should try to close price below 50 DMA.
- SPY WEEKEND UPDATE
May 22, 2011
- Bank Nifty's Divergence may give a bounce in favor of bulls. I feel it will be a small bounce considering the strong overhead resistance.
- Weekly trend line is also suggesting a possible bounce.
- Last chart shows the bearish cross in weekly chart which suggests that the medium term will be bearish unless the bearish cross fails.
- First chart is the SPY daily with 20 DMA and Resistance line. Price got resisted at this confluence and has started to correct.
- For one to go long price has to above both these levels.
- Weekly chart shows Important support at 133.2 and Stronger support at 20 Week Moving average. Price has not managed to close below this moving average in the recent times.
- Daily close below 133.2 can be used to go short in SPY.
- Consolidation pattern in daily line chart too can give good direction. Look for a close outside the pattern to go long or short.
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