May 20, 2012

  • SPY near an important support resistance line. Price has bounced from this line in the recent past. There is also a chance for a bigger breakdown.
  • Price is approaching lower Bollinger band and 50 Week SMA as shown in the weekly charts. If a consolidation happens at the current level without breaking below 50 Week SMA we may see a bounce. Trading below 50 Week SMA will favor bears.

  • Silver weekly chart is showing a weekly candle with long shadow. The support zone at 26 levels seems to have held for now. So an up move towards the falling resistance line of weekly chart is possible.
  • Daily chart is moving towards 20 Day SMA and 23.6% Fib level which needs to be crossed on closing basis by silver bulls to extend this up move.
  • Hour chart has to sustain above 20 and 50 SMA and the Ichimok cloud of one hour to sustain the up move. 

  • SBI Gave good up move with increasing volume.
  • MACD formation is also looking good for bulls.
  • But price has to move above the all important 200 SMA for continuing this up move.
  • 200 SMA AT 1986
  • 20 Day SMA AT 2010


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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