August 19, 2011

  • SLV Daily chart is moving towards the channel resistance.
  • Resistance line is approximately between 41.70 - 41.80 level.
  • SLV is likely to get resisted at this channel. Daily close above this line will change the above scenario.
  • AAPL Testing 50 Day SMA again. Last fall to this level took support there.
  • Four hour chart also shows a possible support line.
  • Breach of both these levels can give good correction for apple.
  • If price holds 50 day SMA  then stock will move up to 380 levels again.
  • TRIANGLE OF MSFT
  • MSFT Week is near support line of the triangle pattern.
  • Daily chart has not formed a bottom formation yet. Price in daily chart is still below 50 day moving average.
  • Since Price is close to the weekly support line one can look for a reversal pattern in daily chart to enter long in MSFT.
  • If the support line of the triangle breaks down it will be a shorting opportunity.
  • NEGATIVE DIVERGENCE OF GOLD
  • Gold four hour chart is showing negative divergence with macd indicator
  • Four hour candle has given a spinning top formation
  • If this hour candle closes in red we may see gold pull back to 1814 levels or the trend line shown in 2nd chart.
  • My recent post on negative divergence in gold has not done well because of the primary trend of gold. This one looks convincing but current candlestick also should close in red to confirm the weakness.
  • CRUDE OIL NEGATIVE DIVERGENCE TRADE

  • ES is trending down below 50 Hour moving average.
  • Breaking below 1117.50 level will give another correction.
  • Fib levels and 50 Hour moving average will act as resistance if ES starts to move up.
  • CRUDE OIL NEGATIVE DIVERGENCE TRADE
  • S&P 500 ANALYSIS AFTER CLOSING BELL
  • Hour of silver is trending up above 50 Hour moving average.
  • Price has good support in the form of an up trend line too.
  • Price yet to close below 50 Hour moving average from 38.80 levels. 
  • So weakness will be seen only if hour candles start to close below 50 Hour moving average.
  • CRUDE OIL NEGATIVE DIVERGENCE TRADE
  • Descending triangle has given a good short trade.
  • Intraday bounces are getting smaller. Trend seems to be strong.
  • So it is wise to wait for a meaningful pull back before one goes long again.
  • Price moving above 4839 may give some strength.
DESCENDING TRIANGLE UPDATED
  • Intraday Descending triangle gave a short trade. 
  • Decent gains for bulls might come only if they manage to stay above 4893 levels.
CHART-III
  • 5 Minutes chart with a descending triangle, If goes by the rules it should give a breakdown. 
CHART-II UPDATED
  • Nifty was unable to fade the gap in the first attempt and went back to day low as discussed below. 
  • Break of day low may take nifty towards 4800 or below it
  • If day low holds we may see another intraday up move.
CHART-I
  • CLICK THE CHART to enlarge
  • Short term reversal possible only on a close above 4932.
  • Failing to fill today's GAP means today's lows getting tested again.
  • CRUDE OIL NEGATIVE DIVERGENCE TRADE
  • Month chart shows pain for bulls is not over.
  • candle is moving towards the lower Bollinger band in month chart.
  • Day closing below 4880 - 4900 level will increase chances of this happening during this month itself.
  • For bulls to be saved during this expiry they have to stay above 4900 at least.
  • S&P 500 ANALYSIS AFTER CLOSING BELL
  • SPX Weekly chart shows the possibility of a weekly close below 200 week moving average and the weekly cloud.
  • Daily charts also looking bearish with the reversal attempt getting failed.
  • Only hope for bulls is the recent low being held which looks unlikely.
  • Hour charts have also turned bearish with price closing below 50 Hour SMA and hourly cloud.
  • So if bulls are going to turn things we may see it in the hour chart first. As of now bears are all over the place from the smallest time frame to the weekly chart.
  • AAPL TREND UPDATE
  • CRUDE OIL NEGATIVE DIVERGENCE TRADE

Disclaimer

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