- S&P 500 index closed up 12.35 points or 1.12%.
- Dow Jones closed up 100.81 points or 0.97%.
- So both major indices making nearly a percentage gains.
- The first chart in this post shows the S&P 500 closing above its 200 DMA. I was expecting a close below this average today. But bulls were too strong.
- The index has also closed at the 50% fib retrace levels of its recent fall from 1219 to 1010. So a successful close above this level tomorrow can take the index to 61.8% retrace levels in the coming days.
- S&P 500 is trading near its 200 DMA and it is trading below an important trend line.
- So the index should face some resistance before it tries to break the 200 DMA.
- Nifty 15 minutes chart is showing a range of 5435-5470. Break down from this range should be limited to 5400-5408, If it closes below this on hourly basis a big correction may follow.
- Break out of 5470-5480 means continuation of the larger up trend.
- NIFTY WEEKEND ANALYSIS
CNX - IT DAILY CHART
- CNX - IT Chart is showing sideways consolidation after its big Up trend that started around 2000 area.
- One closer look at the chart shows a possible shorting opportunity. The index is trading near its supply zone of 6200 on closing basis.
- One can go short at around 6200 area with a stop loss of 6235 on closing basis.
- NIFTY WEEKEND ANALYSIS
DAILY CHART
WEEKLY CHART
WEEKLY CHART
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MONTHLY CHART
- Nifty daily chart's raising wedge is getting closer to its apex. Another week of consolidation by staying within the boundaries of the wedge will make a perfect set up for a big correction.
- Weekly charts are also trading close to the top of the trading range.
- The weekly stochastic indicator is not showing any weakness. Keep a watch on the %K line which can give an early warning if it moves below the %D lines.
- The month chart is shown with the Fibonacci retrace levels of its fall from 6357 to 2252. And Nifty is trading close to its 78.6% retrace levels at around 5478 region.
DAILY CHART
WEEKLY CHART
- Nifty has closed well above 5 day high ema showing strength.
- The bottom trend line of the raising wedge has given support so a rally till the top of the wedge is possible. provided nifty stays above 5 day high ema.
- The weekly chart is also looking strong. The weekly stochastic has entered overbought zone but it is in no mood to turn down. Until it turns down and gives a sell it's a buy.
- U.S. Markets rallied yesterday more than 2% which will help the bulls today morning.
- DOW JONES ANALYSIS AFTER CLOSING BELL
- Dow Jones closed up 201.77 points 1.99%
- Three possibilities of Dow Jones.
- First one is a W formation in line chart of daily time frame. this will be confirmed with a move above 10380-10400 and a close above this range can push the index above 10600 levels.
- The second possibility is the index getting resisted at the 200 DMA. My personal preference too is this one Dow forming an "M" after hitting the 200 DMA and going below 1000.
- The other possibility is a neutral range play for some time because of the lack of clear trend, Dow can remain in a range of 10000-10400 for some time.
- DOW JONES FUTURES BREAKS OUT
