August 16, 2011

  • Price is testing 50 Day moving average.
  • Daily candle closing below this will favor bears of google for extending the correction
  • 61.8% Fib level and 525 may act as support if price closes below 50 DMA.
  • Up move was resisted at the top of the range mentioned in the below chart.
  • Break of 117.61 can extend this down move.
  • SPY is trading in a range 117.61 to 120.74.
  • 119.22 level is acting as mid point. 
  • ES Hour is moving in a sideways channel with positive bias till now.
  • Price dipping below the middle line will be negative.
  • Price is also testing 50 Hour moving average. Staying below this level will favor bears for a short trade.
  • Silver Hour chart is finding resistance at 39.83 levels.
  • 200 Hour moving average is giving support.
  • So price should breakout of this range for bigger moves to happen.
  • Price staying above 200 Hour moving average will favor bulls for a long trade.
  • Reliance Industries continue to make newer lows in daily chart.
  • Next level to break for bears is 753. Break of 753 will extend profits for bears.
  • If 753 holds we may see an up move towards 800 levels.
  • Nifty futures 30 minutes chart with important numbers to watch out.
  • Bulls need to take out 5190 and close above it.
  • Bears need to go below 5011.
  • Small range within this range is between 5052 - 5139 which may give an early indication to which side this is going to go
  • We shall see how price behaves near 5 day high EMA when it gets there. 
  • 5 day high EMA has moved below the gap. So if price manages to close above it then GAP may get tested and faded.
  • short trades will be safe below 5 day high ema.
  • Longs can be taken only on closing above 5 day high ema. But positional longs is not showing  good risk reward ratio at the moment.
  • SPX Daily shows price closing the day above 38.2% Fibonacci level. At this rate bulls looks good to cross the 50% fib level and more.
  • Short term trend in hourly charts too has turned in favor of bulls. Price has started to trade above 50 Hour moving average and the cloud. So smlla dips from here may get support from the cloud.
  • However bulls would be safe above 1168 levels. Breaking below 1168 levels may turn things in favor of bears again.


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"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