January 16, 2013

  • Silver nearing 50 Day SMA.
  • 50% Fib level and 50 Day SMA may act as confluence of resistance as shown in second chart.
  • If the up move continue breaking the above mentioned levels price is likely to target the declining resistance line shown in last chart.

  • Dell daily chart shows price pausing near the GAP between 13.08 - 14.59.
  • Weekly chart shows price approaching weekly cloud and 200 Week SMA.
  • Unable to close the GAP should resume the fall in Dell.
  • First chart is the one hour time frame of ES which shows a contraction pattern.
  • Breakout from the contraction pattern should violate the levels shown in the second chart for a bigger move to happen.
  • Daily chart will show weakness only if price starts to trade below 20 Day SMA.

  • FORD Motor breaking above 50% Fib level. 
  • Second chart shows price nearing possible resistance levels between 14.54 - 14.57
  • Last chart shows price nearing 200 Month SMA And the Falling resistance line from 38 levels.'

  • APPLE Testing 100 Week SMA. If 100 Week SMA does not hold price could fall to the multi year up trend line shown in the Second chart.
  • Month chart also shows price nearing 38.2% Fib level which is near the up trend line shown in second chart confluence of support here may stop a bigger fall from happening.


  • Facebook correcting after the bearish engulfing pattern. Yesterday's attempted up move did not last long.
  • Now immediate support levels for the current fall is the 38.2% Fib level as shown in the last chart. If the correction extends price could test the previous resistance levels of 28.75 or the rising 20 Day SMA before moving up again.

  • RCOM Continue to move up above the trend line. 
  • Price breaking above the Golden ratio and the Weekly cloud These two levels need to be held on a closing basis to confirm breakout.
  • Last chart shows negative divergence in daily chart. One has to play this with caution as divergences does not perform well when the stock or index is in a trending move.


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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