January 8, 2012

  • Price staying above 57.62 levels will help bulls to extend gains.
  • 2nd chart shows price hitting the upper bollinger bands with Overbought Stochastic readings. Overbought readings may lead to a correction.
  • If the up move continues It may target the resistance line of a bigger contracting triangle pattern shown in 3rd chart. This resistance line for next week is around 58.60  to 58.70 levels approximately.

  • There is negative divergence. Good resistance levels and Bearish candlestick patterns. But it will be safe to short only on a close below 20 Day SMA.
  • Stock will be weak below 85 levels. But positional shorts will be safe on  close below 20 Day SMA.
  • Trading above 86 will favor bulls to continue the current up move towards 88 - 89 levels.


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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