- SPX Daily chart shows price struggling to stay above 78.6% Fib level.
- Hour chart may go into a range next week between 1333 - 1356.
- Price for now is staying above 50 Hour moving average.
- Price sustaining below 1333 will favor bears.
- For Bulls it will be an uphill battle to cross 1356. We may see a sell on rise price action playing out from next week.
- SPY update of ISLAND REVERSAL PATTERN
July 9, 2011
- Bank nifty has given a bearish engulfing pattern @ 200 DMA.
- Nifty has given a Dark cloud cover pattern.
- CNX IT has given a similar result from 200 DMA.
- For bulls price is still above 50 Day Moving Average.
- So We have to see if these candlesticks take price below 50 DMA or not. If the correction is limited to 50 DMA then chance of another attempt to break 200 DMA may arise.
- Nifty's correction was started from this small triangle pattern
- Chance of an island reversal does exist. But the GAP has already started fading.
- Market started moving up Just before the closing bell. If this continues then island reversal pattern will become invalid.
- As of now island top has clearly formed.
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