October 17, 2011

  • Gold four hour chart is moving towards the apex of a consolidation pattern.
  • I was expecting an ascending triangle like formation But this one may also behave like a bearish flag
  • ES Hour is near 100 Hour sma. Price may give a bounce from this level.
  • Price is also near ichimoku cloud in hour time frame.
  • For the trend to turn in favor of bears price has to sustain below the cloud.
  • Daily chart has hit the top bollinger band.
  • MACD divergence may take affect after moving up some more. 
  • 431 is where the resistance line is price may give a false breakout and then start to fall.
  • So the resistance level will be between 431 - 440 area.
  • Reliance resisted by the line which looks strong for now.
  • Hope for bulls only if they manage to break above the resistance line as of now it looks bad for bulls of reliance.
  • A daily negative candle here will favor bears for the coming days.
  • For bulls they have to try and close the day above 870 for avoiding a negative close.
  • Two Bullish followed by Two bearish charts.
  • Any weakness for nifty should be visible in the area between 5170 - 5235.
  • Closing beyond 5235 may result in a bigger a rally.
  • Any Negative candles near 5170 - 5235 may result in a sell off.


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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