UPDATED CHART
- The index is testing the resistance line of the rising wedge.
- Daily candle should break out and close above the resistance line for bullishness to continue.
- Rising wedge of dow jones futures in 4 hour chart.
- The pattern is approaching its apex. It will give a direction when the range 10360-10600 breaks.
- A good move on either direction is possible. But since it is a rising wedge a break out of 10600 should be traded with caution.
- Break of 10360 should give a good selling opportunity for the bears.
- Reliance industries has broken down from the ascending triangle in daily chart.
- The break down is targeting the 930-950 Level. BUT the 200 DMA and the weekly support line may limit the fall to 990 levels.
- As you can see from the second chart the stock has not been pulling away too much from the 200 DMA recently.
- But if the stock breaks 985-990 level next week means pulling away too much from the 200 DMA and breaking important support lines in both weekly and daily charts. This should make the bulls worried and a larger correction may follow.
- CLICK HERE TO SEE HOW THE ASCENDING TRIANGLE FORMED IN RELIANCE
- BANK NIFTY TECHNICAL ANALYSIS
- NIFTY WEEKEND ANALYSIS
- Bank Nifty's daily chart is showing negative divergence.
- The chart is also showing a raising wedge which can give a break down on the down side.
- The main chart is the weekly chart which hits an important trend line and a deep correction can follow.
- If one gets a chance try to go short near the weekly resistance line.
NIFTY WEEKEND ANALYSIS
NIFTY WEEKLY CHART
- Nifty has broken down from the raising wedge in daily chart. Break of 5350 on closing basis will speed up the correction.
- Nifty has closed below day low EMA and 20 Day moving average.
- Nifty week has formed a bearish candle.
- The last chart shows clear support for bulls at 5350 levels. The support line has held so far an up move from here cannot be ruled out.
- RELIANCE INDUSTRIES TRIANGLE BREAK DOWN
- Dow Jones hour chart is showing resistance at 10600 levels.
- The Hour chart is also forming a channel which is trending down.
- A Break out from this channel may find resistance around 10590 areas.
- If the channel holds the next move will be towards 10300.
- S&P 500 SUPPORT ZONE
CLOSER LOOK
- Nifty futures hour chart is showing support between 5380-5390
- The hour chart is supported by an important trend line in this zone.
- The index might get support in this zone. But a break cannot be ruled out as well. If the line breaks that could be the starting of a larger correction. For confirmation one can wait for the break of 5350 in nifty spot.
- NIFTY DAILY CHART ANALYSIS
- Nifty daily chart is showing another consolidation triangle pattern.
- Since the raising wedge pattern has given a break out on the down side, this triangle may break on the down side. But because it is a triangle one should look for a false break out as well.
- Price is coming near the 20 SMA. the main support for nifty is at 5350 look for a reaction from these two levels.
