June 9, 2011

  • ES Hour chart hits 50 Hour moving average.
  • Last hit was faced with stiff resistance and price fell. 
  • If price does not sustain above 50 Hour moving average again we will see a fall.
  • If price rises from here 1290 level will act as resistance.
  • First chart is ES Hour time frame shown with the descending channel and cloud.
  • The fact that Price is yet to touch the cloud in hour time frame shows the strength of this down trend. 
  • Daily time frame is shown with 200 day moving average. Price is hanging around this Moving average for last two days which will give some hope of a pull back for bulls, Unless the hour shows some turnaround price may continue to slide down.
CHART-II
  • Nifty has given hope for bulls from near the support line. But the resistance line looks strong. If they move above resistance line price has to close above 5570 for bulls to gain momentum.
  • Getting resisted here and breaking 5480 will favor bears
CHART-I
  • Nifty in a triangle shaped consolidation pattern.
  • If the support line holds we may see an up move in the later part of the day.
  • Break of support line will favor bears.
  • SBI is getting resisted near 20 day moving average.
  • Price has also fallen below its 50 Hour moving average.
  • Price will be weak below 2272 level.
  • 20 DMA and 2356 may act as resistance
  • First chart shows that while Dow Jones and S&P 500 are making their longest losing streak since 2009 we are not following them at least till now we have not reacted negatively till now.
  • May be the trigger for shoring will come if 5480 or 20 day moving average is broken. Price is holding on to 20 day moving average.
  • But it is not moving up too. As can be seen from the weekly chart the 20 week moving average is acting as resistance. A weekly close above this level will favor bulls.  
  • First chart is Dow Jones Spot which has closed by violating the trend line in daily chart.
  • Second chart is of S&P 500 Futures which is not showing signs of a pull back yet from its 200 Day Moving Average.

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"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