June 8, 2011

  • Crude Oil has violated the resistance line in four hour chart.
  • Current up move may hit resistance at 102.58
  • ES HITS 200 DMA
  • ES daily chart with 200 Day moving average.
  • Price usually bounces from 200 DMA when it meets the moving average after a long time.
  • So Bulls can expect a bounce.
  • Hour is still trending down below 50 Hour moving average.
  • If a bounce is to happen we will see price moving above 50 Hour moving average.
  • Reliance Industries four hour chart with an inverted head and shoulders pattern.
  • Bullish only if price keeps its head above 964.
  • Break below 928 will favor bears.
  • Although we have a bullish pattern stock is in a neutral place from here it can go both ways. So wait for a breakout or breakdown before one take a large position.
  • Nifty near its resistance levels
  • 5600
  • 38.2% Fib level
  • 20 week moving average.
  • Has to close the day and week above these levels for 5700 otherwise this trading range of 5400 - 5600 will continue for some more time.
  • Dow Jones in the daily chart is about to hit a trend line. We had 5 red candles so this hit at the trend line may result in a green or white candle.
  • Price in hour chart is trending down below major moving averages after the death cross.
  • Last chart is to give some hope for bulls. Price may give a higher low and RSI is about to make a lower low resulting in Hidden Positive Divergence. Note: Price has not made a bottom yet so we have to wait and see till Dow Decides to bounce.


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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