December 12, 2011
- Hour chart shows a fast fall in action. 50 Hour SMA is struggling to cross above 200 Hour SMA resulting in a fast fall. If price does not turn around soon then the recent lows might get tested again.
- Breakdown of the supporting trend line in hour chart has given a good down move. If the day closes near the lows then important support levels will be tested again.
- There is positive divergence in lower time frames But price has to confirm by a higher close which has not happened yet.
- For bulls of nifty price has to close above 20 SMA. Price sustaining below 20 SMA will favor bears.
- 20 SMA is at 4920.
- Week Low EMA is at 4837 which may act as support level, Breaking below 4837 may push nifty towards the weekly support levels again.
- So for bulls price should hold above Week low EMA and break above 20 Day SMA.
- Line chart shows price getting resisted at previous support Resistance level. This level should be crossed for a bigger up move to happen.
- CNX IT CHART ANALYSIS
- RELIANCE INDUSTRIES WEEKEND UPDATE
- Resistance for SPY in daily chart are the 200 SMA and the Top bollinger band.
- Price closing above 200 SMA and above the Top Bollinger band may give a sustained up move.
- For bears price need to break below 20 and 50 SMA. Indicators like stochastic has reached overbought levels, If price closes below crucial moving averages SPY may star to slide.
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