May 31, 2016

  • Tata Motors weekly chart shows a bullish looking 'W' Breakout. if this move sustains above 431 levels bigger moves are possible. 
  • Next crucial resistance is near 480 Levels. Price can jump well above 500 levels if it moves above 480 levels. Unable to cross 480 levels on closing basis may stall this breakout.
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  • First chart shows an Ascending broadening wedge in 4 Hour time frame. There are many target versions for this pattern upon a breakout or breakdown But what i am interested in is how it is going to play within this pattern. As price has only made two meetings with the upper resistance line Bulls are likely to meet the upper resistance line first. This will also validate this big breakout. 
  • One can keep a trend strength indicator for catching maximum points on such breakouts. Usually for small breakouts i use the 15 Minutes cloud. But one can experiment with this when the breakout is big, Many uses even the One hour cloud which can capture big points if its a big big breakout. For this one i am following the 30 Minutes cloud.
  • As far as the pattern goes I am expecting an upper touch first before it turns to make a big bearish move. That's what i expect this one to do, But stock patterns many times does not work exactly the way want it to work. So have trailing stop loss and enjoy partial profits till the move last.
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May 29, 2016

  • Weekly chart shows price moving into resistance zone. But Daily is moving into it with a possible bullish pattern an IHNS. 
  • Even if bulls get a breakout from the daily pattern the BEARISH UPPER SHADOWS OF MONTH CHART is a concern. One good thing for bulls is the number of days left for the Month candle to close. If bulls get a breakout early next week then Month candle can make the Highest Closing price in month chart for S&P 500.
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  • May 28, 2016


    • Apple daily trying to fade the result GAP. Price now is moving to crucial resistance levels. 50 Day SMA and Golden ratio may act as resistance if the up move continues. Even if these resistance levels are crossed the 200 Day SMA will be tough to cross for apple bulls. For a change in trend price need to sustain above 200 SMA, Last 2 attempts to stay above 200 SMA has failed.
    • ES ASCENDING TRIANGLE BREAKOUT
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    • Nifty Month continues to look good for bulls. 
    • Daily is doing a golden cross. Performance of this one depends on how much time price is going to trend above 50 SMA. Weakness comes back if price closes below 50 SMA again.
    • Next crucial resistance level is near 8300 levels as shown in last chart.
    • S&P 500 ASCENDING TRIANGLE
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    May 27, 2016

     
    • Crude hour is taking support at 200 Hour SMA. More strength in hour chart if price sustains above 50 Hour SMA. Bigger correction only if price breaks below 200 Hour SMA.
    • ES ASCENDING TRIANGLE BREAKOUT
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    • Hourly ascending triangle is looking good for bulls. But price need to cross the resistance levels of 4 hour time frame.
    • Price need to sustain above 2094 for a move towards 2105
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    • ES 4 Hour continues to trade below the resistance levels discussed from yesterday. One hour chart shows a bullish ascending triangle pattern. Bullish if price stays above 2094 levels. Weakness below the red support line. Bigger weakness below 2082 levels..
    • CRUDE OIL WEAKNESS @ RESISTANCE LINE
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    • The trend for Facebook remains strong as price continues to trade above all crucial moving averages. Price in daily chart is trading in a range between 115 and 121.  These ranges in an up trend usually resolves in favour of bulls but there is a GAP below 115 which is yet to be faded if price does not go through the resistance(121) soon then bears may come back to fade this GAP.
    • CRUDE OIL WEAKNESS @ RESISTANCE LINE
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    • Pattern rules suggest a 700 plus points target for the breakout. But it would be rare to see price go according to the rules.
    • Next crucial resistance is at 8336. If bulls sustain price above 7970 this level is likely to be achieved. Weakness if price falls back below 7970 levels on closing basis.
    • CRUDE OIL WEAKNESS @ RESISTANCE LINE
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    May 26, 2016

    • Crude oil 4 hour chart shows weakness at the resistance line of the rising wedge pattern.
    • More weakness only if price sustains below 49.20 levels as shown in second chart.
    • S&P 500 BEARISH UPPER SHADOWS OF MONTHLY CANDLES
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    • Twitter weekly in a strong down trend.
    • Hope for bulls in daily time frame if price stays above 13.91. If price does not close below this level the GAP may soon be faded. On the contrary a daily close below 13.91 should take price below 10.
    • S&P 500 BEARISH UPPER SHADOWS OF MONTHLY CANDLES
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    • 4 Hour chart shows crucial numbers for bulls to break above. Sustaining below these levels may lead to weakness.
    • One hour chart may turn weak if price starts to trade below 2082 levels.
    • S&P 500 BEARISH UPPER SHADOWS OF MONTHLY CANDLES
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    • First chart shows daily line chart. There has been 7 attempts to close above 7960 - 8000 levels from September 2015 and only once bulls were able to close above this zone. Price is moving towards this resistance zone after breaking above the falling resistance line shown in weekly chart. So if  bulls are able to do multiple attempts to cross this zone they are likely to be successful. There could be correction as well towards the recent swing lows but as of now the structure in daily is bullish. Bigger weakness only if price breaks below 7700 levels again.
    • S&P 500 BEARISH UPPER SHADOWS OF MONTHLY CANDLES
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    May 25, 2016


    • ES daily moving towards the resistance zone near 2110 level as shown in first chart. 
    • Month time frame shows candles failing to close above 2110 level. Although price violated this level bulls never manage to close above this zone. For a bigger breakout to happen month need to close above this level. Just a breakout above 2110 is not going to be enough.
    • CRUDE OIL CHART UPDATE
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    • 4 Hour chart shows price near the resistance line of  a Rising wedge pattern. Bears may gain strength if price breaks the support line of the pattern. 
    • CRUDE OIL WEEKLY CHART UPDATE
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    • Nifty moving towards the major resistance zone near 8000 levels. Next hurdle for bulls to cross is 7940. 
    • First chart shows a possible inverted head and shoulders like pattern in Daily time frame which is bullish. Bulls need to stay above the rising blue line. Price falling below this line may weaken the pattern.
    • CRUDE OIL CHART UPDATE
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    May 24, 2016


    • Crude oil weekly chart testing crucial resistance zone near 49 - 51. Weekly chart also shows the cloud as resistance.
    • The falling wedge pattern is working in favour of bulls after a false move. Mostly these falls moves are followed by big gains in the opposite direction. Resistance levels for the current up move are 51 and 61 levels.
    • ES RANGE FALSE BREAKDOWN
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    • Range shown in second chart gave a false breakdown. First chart shows the false breakdown and the swift move in the opposite direction favouring es bulls.

    • Bank of America daily stands below the falling 200 SMA. More weakness for the stock if price falls below 14.02 levels as shown in daily time frame.
    • Structure in weekly is doing a corrective up move for the big fall from 18 levels. Now despite this corrective up move the structure will remain bearish price stays below the rectangle shown in last chart.
    • Weekly resistance level is the golden ratio at 15.40.
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    All the contents of niftychartsandpatterns are for educational purposes only and are not Investment Advice or recommendations offered to any person(s) with respect to the purchase or sale of the stocks / futures. Niftychartsandpatterns shall not be held responsible for the actions of individuals, parties, or corporations taken in response to the ideas, thoughts, concepts or information presented in this blog. Hence all the visitors are requested to apply their prudence and consult their financial or investment adviser before acting on any of the Ideas in this blog.

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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