January 28, 2012

  • QQQ Violates the Resistance line which was expected to give a correction in favor of bears.
  • There is no Big volume increase during breakout. But It's a similar kind of breakout as the last one which is explained in the last chart.
  • Month chart shows the January candle breaking the resistance line. January if closes above the resistance line we may see bulls extending the current up move with smaller corrections.

  • Everything looks bullish here except for the Hanging Man at 200 SMA
  • The Selling zone post showed recently may not work If the Hanging Man fails.
  • Hanging man pattern is not a strong indicator It need a Gap Down a Lower close and High volume to confirm the bearishness of this pattern.
  • Weekly line chart looks good for bulls. Bears shall hope that this is a false spike above the down trend line.

  • BANK NIFTY closed near the resistance levels in weekly chart. 
  • Price is also nearing 50 Week SMA and channel resistance line. 50 Week SMA is near 10100 for now. 
  • Daily chart shows two red candles near 200 SMA. But yet to close below short term moving averages. This up move has been a trend followers delight with close above 10 Day EMA Giving close to 1600 points till now.


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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