- First Four charts shows bullish possibilities. SPX if holds 1230 will move towards 1245 - 1250 levels.
- Fourth chart shows Developing negative divergence in Hour chart. Breaking the dotted trend line may give a correction. Higher time frames are looking bullish. Bearishness is developing in Hourly charts, Stochastic is in overbought territory. Bears should hope that negative divergence work well and drag price below 1230 and 1215 levels.
October 22, 2011
- We have a bearish engulfing in daily chart. But price in daily chart is staying above 20 and 50 SMA.
- Daily MACD is moving towards a sell. But Weekly is showing a Buy signal
- Price closed below week High EMA. But Day low EMA gave Support.
- Last chart shows price unable to close into the descending triangle pattern.
- So the direction is not clear.
- To confuse matters Further Nifty's Closing was Negative But Dow and S&P has closed with Huge gains which looks good for bulls.
- For news watchers We have one more weekend meeting to watch from Europe which might effect the way world markets open on Monday.
- Closing above 5170 will favor bulls, But the up move may not be big It might extend till the GAP area at 5230. Closing below 5 Day Low EMA may take nifty towards 4910 levels.
- DIAMOND OF NIFTY
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