January 6, 2012

  • Hour of apple approaching resistance levels with negative divergence.
  • But the hourly trend is safe for bulls as can be seen from the second chart.
  • So One should wait for confirmation for divergence to take effect.

  • Above weekly charts shows strong support near 166 levels.
  • Break of this level will be bad for bulls. But for now indicators and Fibonacci levels shows good risk reward ratio for a long trade.
  • Today's closing is important as a bullish weekly candle here will confirm a short term bottom for Amazon.

  • Bank of America has given an up move yesterday.
  • Weekly chart shows price testing the middle bollinger band. For bulls price shall close above Weekly bollinger band for a bigger up move to happen. Price getting resisted at Middle bollinger band and staying below 6.31 levels will favor bears.
  • For bulls price should stay above the daily ichimoku cloud and 6.31 levels to continue the up move.
  • Price took support near 50 Hour SMA. For bulls closing above 200 Hour SMA will extend the up move into next week. closing below it will keep price range bound.

  • Nifty sustaining below 50 Hour SMA will favor bears. Bulls has to protect day low and take price above 50 hour SMA to avoid a bigger correction.
  • Break of the Range discussed in an earlier post has given a downside breakout and a short trade.
  • More falls if day low is broken again. 
  • Price may target the gap between 4643 - 4676 if day low  gets broken. 
  • For up moves 4725 - 4730 level which was broken may act as resistance. Bigger pull back can be seen if this level is taken out by bulls.

  • For the short term 20 SMA is the support
  • Resistance is 8626 and 50 Day SMA.
  • 23.6% and 38.2% Fib levels may also act as support and resistance levels.


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"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