June 30, 2011

  • SPY has moved above 100 Day moving average.
  • Price also violated the 50% Fib level for 137 to 126 level.
  • Day closing above this level will favor bulls to extend the gains.
CHART-II
  • Wedge break on the upside. 
  • Stay long till weakness is seen.
CHART-I
  • ES 30 Minutes chart with rising wedge pattern.
  • Bearishness will be confirmed if price stays below 50 period moving average shown in the second chart.
  • Price sustaining above 50 Period moving average will continue to favor bulls.
  • Price hits the top of the triangle pattern which was shown earlier in this post.
  • Now it is likely to head down towards 1.41 levels in the coming days.
  • Nifty spot with 30 Minutes chart and Ichimoku cloud.
  • Price is still staying above the cloud. Price went above it after the range breakout near 5300 level.
  • Up trend will stay intact as long as price does not dip below the cloud.
  • First chart shows the stochastic and trend line combination for going short. 
  • It seems we will get one more short trade from this down trend line shortly. 
  • This short trade may not get triggered if nifty decides to give a bigger breakout. But when price hits the trend line with an already overbought stochastic the risk reward ration will favor a short trade. So have a small stop loss for this upcoming short sell.
  • Second chart shows a positive candlestick near 5604 Past four attempts when nifty got rejected here price showed negative candles. This time it looks different and price momentum the way it came back from 5195 to this level in a short span of time shows the strength of bulls. So they may have enough of momentum to go above 5604 this time. 
  • TREND LINE OF DOW JONES

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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