- Price is testing 200 day moving average again.
- Repeated test of this moving average may lead to a convincing break.
- Hour chart falls below the cloud again. Now bears should break the recent low to extend the gains. If they are unable to break the low then bulls may get a chance to stay above 200 DMA.
- Price if continue to sustain above 200 DMA will favor bulls.
June 23, 2011
- Nifty ends the day with a bullish engulfing pattern.
- Price if opens and trades higher this pattern will be effective.
- Nifty at the top of the range and price near 50 Hour moving average.
- So for today's up move to continue price should give a breakout and stay above these two crucial levels.
- Daily close above these levels will favor bulls.
- Unable to break above 50 Hour moving average will be negative for bulls.
- RELIANCE INTRADAY UPDATE
- First chart shows the effect of 20 DMA on SBI.
- Price not able to touch 20 DMA Its selling off when ever it comes near this moving average.
- Price continue to make newer lows.
- For Bulls of this expiry they will get relief only if price manages to stay above 2165 and 20 Day Moving average.
- Last chart shows a long term view. The big up trend which ended at 3500 and the beginning of a long term down trend . This view will only change if stock changes the structure and give higher high and higher low's. Which is unlikely to happen in the near future. In the short term long trades may be attempted on a close above 20 day moving average.
- NIFTY EOD UPDATE
- Daily chart shows price getting resisted and closing below 20 day moving average.
- Hour chart shows price unable to reach its 200 hour moving average and closing below the 50 hour moving average.
- Shorter time frames are showing weakness.
- If price continue to sustain below 20 DMA then this up move started from 200 DMA will loose momentum.
- AAPL ANALYSIS
- AAPL fell below 200 DMA and is trying to break above it again.
- Usually when price retraces towards a broken Moving average it faces selling pressure.
- 330 area will be tough for bulls to cross on closing basis. If they manage to make a positive closing then price may move towards the top of the channel shown in 2nd chart.
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