February 1, 2012

  • US Dollar falling in a narrow channel
  • If the channel holds price may target the blue trend line shown in first chart.
  • Breaking below 38.2% Fib level will extend correction towards the trend line.


  • AUDUSD Trying to move away from 200 SMA.
  • Resistance is seen between 1.0750 - 1.0763 level. Breakout above this level may take this pair towards 1.1010 - 1.1080 zone.


  • Week candles shows resistance at 50 Week SMA.
  • If a correction happens Weekly support line may act as support.
  • If weekly trend line breaks important support levels are 166 and 160.
  • Bullish structure of the stock will be tested below 160.
  • ES TREND ANALYSIS


  • Silver Four hour moving up in a channel
  • As long as the channel holds the consolidation ranges should result in up moves.
  • 2nd chart shows important support and resistance levels in Hourly chart.



  • Nifty does a Bullish month it narrowly missed the 5 Month High EMA like it has done many times during this down trend.
  • For a bigger move to happen price has to give a clear breakout from this descending channel. 
  • Fibonacci fan's shows the beauty of Fib lines Nifty took support at Golden ratio line and rallied to close exactly at the 50% Fib line.
  • For bulls February candle shall trade above last month high price for the momentum to sustain or the larger trend will take effect.

  • In the last few attempts whenever 5 Day Low EMA approached 200 SMA it only managed to fall fast.  
  • One more candle above 200 SMA will confirm a breakout. Bears badly need a close below 5 Day Low EMA.
  • If price manage to stay above 200 SMA price will move into the previous support zone as shown in 3rd Chart.

CHART-II
  • Chart discussed below has given a good breakout in favor of bulls. candle closed outside the pattern and an up move followed. Price looks good to reach the recent high made in ES.
CHART-I
  • Next breakout from the above pattern should give good direction provided its on closing basis.
  • Price may test 100 Period SMA again which acted as support yesterday. Close below this average line  may favor a bearish trade.

Disclaimer

All the contents of niftychartsandpatterns are for educational purposes only and are not Investment Advice or recommendations offered to any person(s) with respect to the purchase or sale of the stocks / futures. Niftychartsandpatterns shall not be held responsible for the actions of individuals, parties, or corporations taken in response to the ideas, thoughts, concepts or information presented in this blog. Hence all the visitors are requested to apply their prudence and consult their financial or investment adviser before acting on any of the Ideas in this blog.

Followers

Blog Archive

Powered by Blogger.

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