December 26, 2011

GOOGLE Chart Analysis

  • On Weekly chart google is doing an Ascending Triangle.
  • Thing that favors bulls is the Weekly closing which is the highest closing for this year.
  • But for bears daily chart is showing negative Divergence. Price is converging between a support and resistance line in daily chart which should give good direction. Presence of negative divergence may give a correction.
  • Short trade will be possible once price starts to trade below 20 day sma and the supporting trend line shown in the last chart. As long as price trades above 20 Day SMA bulls does not have the threat of a large correction.

NIFTY 15 Minutes chart

  • Price getting resisted at the resistance line of the pattern discussed below.
  • Another up move will happen once price starts to trade above the marked resistance line.
  • For bears price should break below the support line of this pattern.
  • Description in chart please click to enlarge

NIFTY Weekly Update

  • NIFTY MACD and Stochastic in daily time frame is showing some support for bulls. But for bears they have the upper boundary in place in the form of 20 Day SMA. Month Low EMA etc. So price need to break these levels on closing basis to continue this up move.
  • For Bulls the lower boundary is Week Low EMA and 50 Hour SMA. Breaking below these levels will favor bears for a short trade. Fall might pickup momentum below 4632 levels. 
  • Week Low EMA at 4688
  • 50 Hour SMA at 4666
  • Month Low EMA at 4713
  • 20 Day SMA at 4806