May 26, 2011
- First chart is the line chart of FOUR Hour time frame. Which shows lower high's and Lower lows's being formed the structure clearly favors bears. Every major rise is being sold off.
- One hour chart is suggesting a possible bounce if the Right Shoulder of an inverted head and shoulders gets confirmed. Price should sustain above 50 Hour moving average for price to move in favor of bulls.
- NFLX BULL FLAG BREAKOUT
- Weekly Chart of NFLX shows a clear smooth up trend. Not challenged yet.
- Day chart shows price breakout from a bull flag pattern. It also looks like a cup and handle pattern.
- If the breakout does not fail. The medium term target for this up move is 280 levels. Price breaking and closing below 250 levels will negate the bullish view.
- SBI is not giving any sign of relief for bulls. No daily or weekly reversal candles yet.
- RSI as seen in the last chart is reaching extreme levels which might give a reversal.
- But the target for the consolidation breakdown is near 2070 levels. Price might get there after a bounce.
- One more thing to note is the structure of the stock which has formed a lower high in daily time frame which is bearish in the medium term.
- Nifty is near an important Support and Resistance area and an important place for bulls
- The support line of the triangle shown in weekly chart may stop the fall. If that is the case then we will see an up move towards the resistance line of the triangle.
- Closing the week below 5300 may make this pattern invalid and bears will be happy to see it.
- RSI in Daily time frame is showing small positive divergence But price has to confirm.
- TRIANGLE POSSIBILITY AND THE CURRENT DOWN MOVE WAS DISCUSSED HERE
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