June 10, 2011
BELOW CHART WAS POSTED IN APRIL
- Dow Jones it seems has made a top near 78.6% Fib level in month chart. First chart shows current month price action. Second chart was posted in april.
- If price closes and sustains below 12000 It may start to move towards the 61.8% Retrace level which is near 11200. This is a medium term view.
- Short term will be bearish only if price sustains below 12000.
- Medium term view may change only if price moves above 12500 level.
- Now bears should protect 5480 - 5500 level.
- Nifty is still inside the triangle that we say yesterday. But this time it is close to the apex of the pattern I hope it is not another false breakout this time as triangles use to do often.
- Note: A busted pattern can also give a great trade. If price comes back into the triangle we can reverse the trade for greater profits.
- Have strict stop loss. Happy trading.
- Bollinger band shows price contraction. Since price is stuck between the upper band and 20 DMA a close outside these two ranges might give direction. Price closing above the top bollinger band will make it an inverted head and shoulders and Cup and Handle Breakout.
- Small triangle shown in the first chart if gives an upper breakout will give momentum for bulls. But they need to take out 5570 - 5605 and close the day above these levels.
- for going short price should sustain below 5480 - 5500 level, this level is showing good support for now.
All the contents of niftychartsandpatterns are for educational purposes only and are not Investment Advice or recommendations offered to any person(s) with respect to the purchase or sale of the stocks / futures. Niftychartsandpatterns shall not be held responsible for the actions of individuals, parties, or corporations taken in response to the ideas, thoughts, concepts or information presented in this blog. Hence all the visitors are requested to apply their prudence and consult their financial or investment adviser before acting on any of the Ideas in this blog.