December 23, 2011

  • Today's closing being a daily and weekly close its important for bulls to stay above the trend line and 200 SMA Till closing bell.
  • On the contrary if this is a false spike and ends up closing below 200 SMA and the resistance line then bears may get a good short trade.

  • Copper daily chart with resistance line
  • Resistance line coincides with 100 Day Moving Average.
  • Current up move might continue only if price is able to stay above the confluence of resistance which is going to be tough.
  • MCX Copper chart below this post

  • Mild negative divergence in crude oil hour chart which might give a correction.
  • Price has to confirm by falling below the Fib levels marked in 2nd chart.
  • Price staying above 78.6% will erase this negative divergence and move towards 102 level.

  • SPX Weekly chart shows price approaching 50 week SMA which is near 1267 levels. Staying above it can extend this up move towards 1292.
  • Weekly chart shows price testing the resistance line and 200 Day SMA. Pull back here means a retest of the support line of the triangle pattern.
  • 3rd chart shows the possibility of a golden cross. It also shows a potential fast fall were if 50 SMA does not cross above 200 SMA price will give a fast opposite reaction in favor of bears.

  • ES Trying to breakout above the resistance line.
  • Price if sustains above the resistance line will extend this up move.
  • Hour charts have started to show some negative divergence with MACD indicator. But if price continue to create new high's Bulls will have little trouble.
  • For bears price has to break the trend line shown in the chart.


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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