May 25, 2011
- Nifty is forming a consolidation pattern in daily chart.
- Staying above 5343 - 5348 on closing basis will favor bulls. Closing below this level will favor bears.
- Chart is showing a bearish cross and 20 DMA acts as good resistance on a down trend. So for an up move to happen bulls should try to go above 20 DMA.
- 78.6% is an important support level on a correction.
- S&P 500 ANALYSIS AFTER CLOSING BELL
- SPX 15 Minutes chart is forming a range and if it breaks on the upside it may trigger a rally because price is near the support line of the channel in hour chart.
- 2nd chart is the hour time frame which shows price hitting the support line and it may give an up move if this line is held.
- Day shows price yet to break the cloud and is near 50 DMA. If price moves above 50 DMA by not breaking the cloud Bulls may get a bounce in their favor.
- For bears its simple they have to violate the support line of the channel shown in hour chart to create more panic for bulls.
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