July 1, 2011

  • Price hits 50 day moving average.
  • But it is yet to touch the down trend line shown in daily chart.
  • If price Closes above the down trend line and 50 DMA This up move may target 545 level.
  • If price is stopped by the trend line and closes below 50 DMA then we may see another correction.
CHART-II
  • Range mentioned below has given a good breakout for bulls.
CHART-I
  • ES 30Minutes chart shows price with ichimoku cloud.
  • Price continue to be in a smooth up trend in this time frame.
  • 15 Minutes chart shows price in a small range between 1312 - 1317. This range has to be resolved for bigger movements to happen.
  • S&P 500 ANALYSIS AFTER CLOSING BELL
  • 5604 was the previous resistance and any correction to this level will be called as a correction of the breakout.
  • If 5604 is taken out on a closing basis then bulls should be worried.
  • We saw the opposite happen in reliance today 890 level was previous support this level acted as resistance for the stock. 
  • RELIANCE INTRADAY UPDATE
  • Reliance comes back to the broken level of 890 - 900.
  • This level acted as support before so according to classic technical analysis previous support should act as resistance.
  • But if price decides to move above 900 and sustain ti shall target 945 - 950 level.
  • Second chart shows price near 20 day moving average and the resistance line. If the down trend is strong these two levels will hold bulls of reliance. For a stronger reversal to happen price should break and sustain above the resistance line and 20 day moving average.
  • RELIANCE LIVE CHART
  • First two charts shows Nifty approaching Multiple resistance lines and 200 DMA. 
  • The level of resistance is between 5700 - 5750.
  • Problem with the resistance line that touches 6335 , 6181, 5944 is the Obvious nature of the trend line. Everyone is expecting this trend line to resist nifty this time. And 200 DMA stands about 50 points above this trend line. So there may be some whipsaw's here before the big short trade plays out.
  • Indicators - MACD looks strong in favor of bulls. Stochastic has reached overbought level. One shall wait for reversal candles from 5700 - 5750 level before taking short positions.
  • S&P 500 ANALYSIS AFTER CLOSING BELL
  • First chart shows price movement from 200 DMA to 50 and 100 DMA. Price closed above the resistance zone of 1316 were 50 and 100 DMA stands.
  • Price closed above the down trend line in daily chart and is moving into the resistance zone of 1332 - 1344 level.
  • Hour chart is also looking positive and is trending up above 200 hour moving average.
  • TRIANGLE PATTERN : EURUSD

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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