November 23, 2011

  • Price falling down in a channel.
  • Hour chart is trending down below 20 Hour SMA.
  • For bulls price has to get out of the channel and stabilize above 20 Hour SMA.
  • Crude Oil Daily chart with 20 Day SMA.
  • Price closing below 20 Day SMA will strengthen bears of crude oil.
  • Weekly chart has given a bearish candle as discussed in a previous post. Now its the time for daily chart to confirm weakness by closing below 20 Day SMA.
  • ES four hour chart shows price continue to break support levels and move down. For bulls price has to breakout above the channel.
  • Price also continue to stay below 50 Hour SMA. As long as price does not break above 50 SMA a meaningful up move will not take place.
  • VIX is looking good for bears. If it crosses 29 - 30 levels then volatility on the downside will increase. Unable to cross above 29 may give some relief for bulls.
  • Price is below month low EMA and closer to the important support level of 4720 this combination has held for the last 3 months.
  • Risk reward ratio favors a long trade here but the way price is getting rejected at day low ema is not helping bulls. So its better to wait for that close above 5 Day Low EMA which has not happened for many day's now.

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.

Followers

Blog Archive

Powered by Blogger.

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