September 16, 2011

  • SPY Four Hour chart with Stochastic indicator.
  • As long as price stays in this broad range stochastic buy and sell signals from over sold and overbought levels will work well.
  • Last two sell signals has given good short trades.
  • We may get another sell signal soon. But stochastic is yet to turn down. Price may start to move in favor of bears if 120.32 is broken.
  • Crude Oil is falling down towards the support line
  • Break below the support line will test support levels.
  • If 85 and 83 does not hold then price may test recent low(75).
  • Weekly chart shows resistance between 1219 - 1230 levels.
  • For bulls price has to close the day and week above this level to continue this up move.
  • Bidu four hour chart shows an ascending triangle pattern.
  • With rising supports this one should give a breakout above the resistance line according to the rules of an ascending triangle pattern.
  • But triangles are known for whipsaws so lets wait and see how it moves. price breakout and closing above 152 levels should favor bulls of bidu. Price falling below 140.65 will favor bears of BIDU.
  • As discussed in the below chart Descending triangle breakdown has failed. Now if it starts to trade above the falling resistance line of the triangle it will target 1844 and higher.
  • Trading above 1792 will weaken the bears as that will question the validity of this breakdown.
  • For today a short sell is possible below 1762.Bears will be weak above 1792 as that will question the validity of this pattern. Above 1844 bulls will be strong.
  • Price closing above 1935 - 1940 will favor bulls. If price sustains above 1952 for next week stock will target 2000 levels.
  • Price should stay above 1952.
  • Policy news is behind us now.
  • Price got resisted at 1933 levels. 
  • For the up move to continue SBIN should close an hour and day above 1935 levels.
  • Price staying below 50 Hour moving average will attract shorts.
  • Bullish above 1935-40. Bearish below 50 Hour moving average. 
  • Nifty closed above day high ema.
  • Price is getting closer to week high ema. Since its a Friday a weekly close above 5 week high ema will help bulls to extend gains. RBI policy news should also support bulls. 
  • Comparing price with RSI it shows that this indicator is moving faster to overbought levels which is negative for bulls.
  • RBI policy should also help bulls. If rate hike is more than 25 bps it will end this up move.
  • USO Daily chart is getting closer to the resistance line in daily time frame.
  • Big correction awaits USO once price his the resistance line


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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