- Google moving higher because of its good results.
- But stock is trading near its weekly resistance lines.
- So this up move today may get extended till 628 levels. First weekly resistance line comes near 628 and if the resistance line in weekly chart gets broken stock may target 650 levels.
- I am expecting this up move to get exhausted near the first resistance line.
July 15, 2011
- Dow Jones hour is showing price taking support @ 38.2% Fib level.
- SPY Hour chart shows support coming @ 50% Fib levels.
- For bears these levels has to break convincingly. Hour chart still shows a falling wedge kind of pattern so If these levels hold then we may see bullish reversal patterns playing out.
CHART-II (UPDATED FROM BELOW)
CHART-I (AS SHOWN YESTERDAY)
- 2nd chart was posted yesterday.
- The support level 1302 has held till now.
- New lows will be possible only if an hour closes below 1302.
- Price has been finding resistance on the resistance line of the triangle. So above 1318 we may get a breakout towards 1328 level.
- Below 1302 price may stop at 1295 level.
- SPY CLOUD SUPPORT
- Twice nifty has found support @ 5500 level as shown in hour time frame.
- For bulls a bigger up move will be possible only if they manage to break and close above the descending channel. That will happen if they close above 5625 - 5635 level.
- Even if price gives an intraday up move bears will find help from the resistance line. If the up move gets resisted then correction towards 5500 is likely to happen.
- Bigger sell may arise if price closes below 5500 level. Closing below 5500 will complete a rounding top formation.