January 11, 2013

  • ES one hour chart with support and resistance lines.
  • Price sustaining above 50 Hour SMA and the cloud may lead to an upper breakout.
  • For now price is testing the range breakout. If price closes back into the range we may see a bigger correction for the false breakout.
  • Crude oil violating the weekly resistance line. Bulls need a close above this line for extending the up move. Price closing the week back into the pattern will favor a short trade.
  • Price also testing 100 Week SMA. A Bearish weekly candle at this stage may favor bears of Crude oil. For extending the up move price must close the week above 100 Week SMA.

  • First chart shows price trending up above the up trend line.
  • Second chart shows a MACD sell signal and price testing 20 Day SMA. For bears of BAC Price need to sustain below 20 Day SMA for a bigger fall.
  • Last chart shows weekly chart with Fibonacci fan. Price showing weakness at 50% Fib line.

  • The Bull Flag of Facebook continues to perform well as shown in last chart.
  • Next crucial resistance levels are shown in first chart they are 32.88 and 33.45
  • Fibonacci levels shows price testing 50% Fib level. Trading above this level on closing basis may target the Golden ratio.

  • Nifty has closed one of the GAP's which was created during the current up move.
  • Sustaining below 5947 Nifty is likely to close the next GAP between 5963 - 5982.
  • Price may fall to the rising trend line shown in the last chart.
  • 200 Hour SMA of one hour time frame is also likely to act as support. A bigger fall if price closes below this line.

  • TCS Testing 200 Day SMA.
  • Weekly chart forming a bearish engulfing pattern, Bears need a close at the current levels or lower to confirm the pattern.
  • Price is also near 50 Week SMA and an up trend line which may try to save bulls from a bigger correction.


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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