August 4, 2011
- When i did this post i never believed this HNS would do this well for bears. And many readers said the same thing. And it ended up a perfect HNS pattern.
- USO Daily chart is showing a head and shoulders pattern.
- Knowing the reliability of Head and shoulders these day's one should be careful before shorting.
- 34.75 - 35.15 are may give support. Price closing below this level will give good gains for bears.
- Nifty has filled a GAP between 5330 - 5348 which was created in June when the up move from 5195 started.
- Support line of the wedge is broken and price has filled a GAP in chart shown in the above chart.
- Price continue to remain inside the wedge.
- Breaking the support line will extend correction. If price gets support here we might see an up move.
- Nifty spot in a falling wedge like pattern.
- Breakout above the resistance line can give good up move for bulls.
- For bears the dotted line and the support line of the wedge should be broken.
- Nifty staying below 5 day low EMA will favor bears.
- Stochastic is showing oversold readings. But price has not shown any signs of a reversal yet.
- Candle looks like a spinning top which shows indecision and sometimes leads to reversal of current trend.
- Price closing below 5400 will strengthen bears.
- S&P 500 ANALYSIS AFTER CLOSING BELL
- Candlestick of the day shows strong buying @ lower levels.
- But for bears this has taken place at their backyard which is below 200 DMA.
- So this bullish reversal candle might have strength only for a retrace towards the Broken 200 DMA.
- Real strength for bulls can be seen only above 200 DMA. So retrace towards 1285 levels is likely to get resisted there.
- Price is still staying below the cloud and 50 period moving average in 30 Minutes time frame. These levels should be taken out first for continuing this bounce.
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