- Its a day of false breakouts.
- Silver did an upper breakout from its rising wedge and gave a correction
- Crude oil false breakout was from an ascending triangle pattern.
- SPY and ES did gave false breakouts from the rectangles in which they were trading. Price is moving in the opposite direction.
- Usually price moves well in the opposite direction after a false breakout. ES and SPY are doing it, But silver is trying for an upper breakout again.
My blog Analyses the trend and patterns of stocks, Futures, Commodities and Forex Markets
August 17, 2011
False Breakout of Silver, ES, SPY and Crude Oil
SLV Hour chart analysis
- SLV hour is showing a possible rising wedge pattern
- Price is trending up above 20 Hour moving average.
- If price starts to trade below 20 Hour moving average we may see an extended correction from the rising wedge.
- US DOLLAR TESTING SUPPORT LEVELS
Rising Wedge of SILVER
- Silver four hour chart is showing a bearish rising wedge pattern.
- One can try to remain short from the hourly chart.
- Price falling below 50 Hour moving average will favor bears. Bigger fall below 200 Hour moving average.
- Rising wedge will become invalid if the resistance line gets broken.
- US DOLLAR TESTING SUPPORT LEVELS
S&P 500 Futures stuck in a range
CHART-III UPDATED
CHART-II UPDATED
- ES has given a breakout from the range. Price sustaining above 1202 will favor bulls to extend the up move.
CHART-I
- ES is stuck in a range between 1177 - 1202
- Price is also moving around 50 Hour moving average for quite sometime now.
- So a breakout or breakdown from this range which means moving away from this moving average may result in a bigger move for ES.
- GOOG FALLS BELOW 50 DMA
- S&P 500 ANALYSIS AFTER CLOSING BELL
TATA MOTORS Analysis
- Tata motors has clearly broken its weekly uptrend line.
- Price is about to complete 50% retrace in weekly chart.
- Weekly charts are looking oversold.
- Daily chart is starting to develop positive divergence
- We might see another dip towards 750 - 760 levels before price starts to move up again.
- Best way to play positive divergence after a big down move is to confirm with a close above 5 day high ema.
- Stock is in a strong down trend so stay short while it closes below 5 day low EMA.
- Longs are possible only on a close above 5 day high EMA.
- S&P 500 ANALYSIS AFTER CLOSING BELL
S&P 500 Analysis after closing bell
- Hour time frame is still favoring bulls with price staying above 50 Hour moving average and the cloud.
- Price closed below 38.2% Fib level. But day remained within the range of yesterdays candle.
- Range is between 1180 - 1205.
- Support level is at 1168.
- Below 1168 Bulls will become weak.
- Falling 20 Day Moving average might also act as resistance in the coming days.
- RANGE OF SPY
CRUDE OIL Resistance levels
- Immediate resistance level for crude oil is the 50% Retrace level for the current fall. Price is not able to break above this level.
- Major hurdle for the bulls of crude oil will be 89.60 level which was the previous support. Now that it has been broken this may act as resistance.
- If price manages to break both of them then it will be safe to stay long.
- GOOG FALLS BELOW 50 DMA
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