- Dow Jones hour chart shows clear break of the channel.
- Support in hour chart is near 12530 level.
- Break of this level will turn the trend in favor of bears.
- SPY MAY DO AN ISLAND REVERSAL
July 8, 2011
DARK CLOUD COVER
- Nifty has given a dark cloud cover pattern.
- Pattern is not perfect, today's candle could have started a little higher for a perfect dark cloud cover pattern.
- Still price action looks bearish. Yesterdays bullish candle is almost engulfed by bears.
- TRIANGLE PATTERN UPDATED. LOOK HOW IT ALSO LOOKS LIKE A SLOPING HEAD AND SHOULDERS PATTERN
- A triangle that worked perfectly after a long time. Look how it also looks like a sloping head and shoulders pattern which increased its bearishness
- Nifty 15 Minutes is trying to put up a triangle pattern.
- Breakout from this pattern may give good direction.
- One should also expect whipsaw's.
- Three important short term levels for nifty bulls to defend are 5705, The channel support line and the most important number at 5605.
- Nifty weekly chart shows a possible resistance area at 5750 on closing basis.
- Price is near 200 DMA.
- These are the next two resistance points. Good weekly closing above these levels will take nifty closer to that upper bollinger band shown in the 2nd chart.
- On the contrary getting resisted here and closing below 5700 will be slightly negative.
- DOW JONES EOD ANALYSIS
- Dow Jones 30 Minutes chart shows price moving up in a channel the smooth up trend yet to be challenged.
- Hour chart shows price trending up above shorter period moving averages and ichimoku cloud.
- Hour indicators have started to show negative divergences and weekly resistance is at 12875 level. In all likelihood price will test 12875 level and then start the correction.