March 31, 2012

  • Apple weekly chart is showing bearish candles.
  • Daily chart is also correcting from a bearish candle. But price is yet to test the all important 20 Day SMA for a bigger fall price has to stay below 20 Day SMA.
  • Last chart which is the daily time frame shows Big negative divergence between price and MACD Histogram. MACD signal lines too has given a sell. Now for bears of apple price need to close below 20 day sma for a bigger correction to unfold.
  • Last chart is month time frame with 5 Week High EMA and channel. Nifty closed the month again below 5 Week High EMA suggesting lack of upward momentum in the bigger time frame. Dip in price was saved by the channel resistance line which turned support. Price may attempt to stay above the 5 Week High EMA again, But for bigger momentum price has to stay above this months High price which is 5499.
  • Nifty weekly chart shown with 50 Week SMA. In yesterday's post we discussed the possibility of price closing above 50 week SMA. Nifty closed above it and in the process gave a bullish looking candlestick as well.
  • Daily charts shows price moving into a resistance zone in the form of 20 and 50 Day SMA and the falling resistance line. MACD and Stochastic are lining up well Nifty bulls has to sustain above the resistance line for a bigger up move.
  • For bears the gains seems to be limited as long as price stays above the 200 Day SMA

  • Google weekly has given a perfect bearish candle in weekly time frame and it has come at an important resistance level for this stock
  • Bearishness is clearly evident in lower time frames like hour chart were price has fallen below 50 Hour SMA and about to break below the hourly cloud. Hour trend will completely turn bearish below the cloud.


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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