May 5, 2012

  • GMCR Descending triangle and Range breakdown shows a possible target below 10.
  • Stock gaped down with Huge volume. Previous GAP happened on relatively low volume compared to the recent gap. Gap fading will be tough this time due to high selling volumes. 

  • SPY Month chart is showing bearishness near the top bollinger band. Crucial support levels in month chart are the April Month low - 135.76 and the March Month low - 134.36.
  • Weekly chart has given a MACD sell signal. For bears to extend the fall price has to trade below 20 Week SMA.
  • Daily chart shows multiple levels which may give an oversold bounce - Lower Bollinger band, 100 Day SMA and the Swing low 135.76 - 135.94.

  • SPX Daily closed below 50 and 20 day sma. These two moving averages does a  bearish cross as well.
  • Next crucial support levels are near 1357 - 1358 level. Daily chart has a possible Head and shoulders pattern which has not given a breakdown yet.
  • Weekly candle looks almost like a bearish Engulfing pattern. Trading below 20 week SMA will favor bears to extend this fall.

  • Dow jones near the support line.
  • Price yet to break below the cloud for this time frame.
  • If the support line is held an up move is possible in Dow Jones


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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