August 4, 2011

  • Silver is falling off a cliff. Hour chart looks really bad for bulls.
  • Day has fallen below 20 day moving average.
  • Today's candle has engulfed many candles. Closing at the lows of the day will strengthen the bears further.
CHART-II
  • Weekly support level mentioned in the below chart did not hold for long.
  • Price violated that level and closed the day below it
CHART-I
  • SPY Weekly chart shows support around 121.70 levels
  • This level may hold for sometime.
  • Next leg down will happen only if this level is taken out.
CHART-II
  • 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.
CHART-I
    • 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.
    • First chart shows the reversal attempts of ES getting rejected above 50 Hour moving average.
    • Price is also getting rejected by the cloud.
    • Trend will turn in favor of bulls if price is able to sustain above the cloud.
    • S&P 500 ANALYSIS AFTER CLOSING BELL
    CHART-IV
    • Nifty has filled a GAP between 5330 - 5348 which was created in June when the up move from 5195 started.
    CHART-III
    • Support line of the wedge is broken and price has filled a GAP in chart shown in the above chart.
    CHART-II
    • 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.
    CHART-I
    • 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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    All the contents of niftychartsandpatterns are for educational purposes only and are not Investment Advice or recommendations offered to any person(s) with respect to the purchase or sale of the stocks / futures. Niftychartsandpatterns shall not be held responsible for the actions of individuals, parties, or corporations taken in response to the ideas, thoughts, concepts or information presented in this blog. Hence all the visitors are requested to apply their prudence and consult their financial or investment adviser before acting on any of the Ideas in this blog.

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    My Favourite Quote

    "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