August 7, 2012

  • SPY 15 Minutes chart shows negative divergence. But price is not showing any weakness yet.
  • Price sustaining above the cloud will not give bigger falls.

  • CISCO Daily closes above 50 Day SMA.
  • Price testing the daily cloud.
  • If the daily cloud does not stop the bulls of CISCO then price could move towards 38.2% Fib level as shown in last chart with fib levels.

  • ES One hour in a small channel.
  • Break below the channel and 50 Hour SMA may give good correction.
  • ES four hour chart is also showing a resistance line.
  • for the up move to continue price must breakout above the channel and resistance line.


  • Nifty is testing the triangle resistance line in daily chart.
  • Last chart shows price above 5 Week High EMA (5256). Sustaining above 5256 level should extend the current up move towards the weekly resistance line.
  • Week trading or closing below 5256 level will be negative.

  • Reliance has given a breakout above the resistance line discussed in yesterday's post.
  • Price moved above 50 Week SMA.
  • Now bulls need a weekly close above 50 week SMA for the momentum to sustain. 
  • Weekly stochastic is nearing overbought zone so one should make sure that the stock sustains above crucial support levels.

  • Citigroup has given a trend line breakout. But stock will face resistance near recent swing high of 29.23 and 200 Day SMA at 29.90.
  • Daily close above these levels may result in a bigger up move.


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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