August 8, 2012
- SPY Hour chart with negative divergence.
- Last two divergences has given a correction and correction for the current divergence is yet to happen. Price falling below 20 Hour SMA and 139.80 may give a correction in favor of bears.
- PCLN BEAR FLAG AND TARGET
- PCLN Weekly bear flag is about to breakdown. Possible technical target for the bearish Flag is around 432 as explained in 1st chart.
- 549 - 561 was previous resistance zone in weekly chart. This level may give a pause or consolidation before moving towards the bear flag target.
- Breaking the weekly trend line will be negative and price will trade at the range as shown in last chart.
- Nifty weekly chart is moving towards the resistance line
- Month chart is trying to stay above 5 Month High EMA(5346). Month chart had a bullish engulfing pattern about a month back and if price breaks out above 5400 we may see a follow up for that pattern.
- Last chart shows a perfect cup and handle pattern. But bulls shall not get excited too much as weekly price is near the resistance line. Price has to close above 5400 for the pattern to work well.