- Nifty is forming another broadening formation. Broadening formations are mostly bearish patterns.
- Nifty yesterday violated 50 DMA. But came back to close above it.
- 5350 region is crucial as shown in the last chart. If nifty goes below 5350 chances of breaking the support line mentioned in the 3rd charts is higher.
- Dow Jones is showing a range of 223 points in hourly chart with 9936 as support and 10159 as the resistance.
- 9936 level has given support 3 times now.
- Hour chart is also showing a head and shoulders pattern.
- Daily chart nearly did a Doji day today. Last hour of trading was extremely tough for both bulls and bears, and in the end the day ended with very little change.
- 20 DMA and 50 DMA is converging so we can expect some action in the coming day's.
CHART - II
- Range of 9936 - 10159 breaks out towards the upside. Minimum target is 10350. But Dow jones at the moment is up by more than 2.50%, so try to enter long trade if a pull back happens.
CHART - I
- Dow Jones hour chart is showing a range of 10159 - 9936.
- 223 points towards the breakout point. But the direction may not be that easy to predict.
- 9936 area has given support 3 times. So an hourly close below this level may not be good news for the bulls.
- If index gets support at the lower end of the range a good rally towards the upside is possible.
- Most important wait for the range to break and give clear direction before entering into a trade
CHART - I
- Dow Futures broke 9965 and gave a long trade as discussed below.
- Now next resistance is at 10064 above that may rally towards the channel resistance line.
CHART - II
- Dow Jones futures breaking 9965 was negative for the bulls.
- Now if the index trades above 9965 convincingly a long trade is possible
CHART - II
- Nifty bounces from 5360 levels as discussed below.
CHART - I
- Nifty futures may give a long trade from 5360 levels.
- One can keep a stop loss of 5346 for this trade.
- Nifty did a gap up on Monday but faced selling pressure throughout the day and closed near the recent lows.
- the index has closed below 20 DMA. It is testing 50 DMA. Closing below 50 DMA will test important support areas.
- U.S. markets also ended in the negative territory which may give a gap down for us.
- S&P 500 analysis after closing bell
- Upper trend line of the channel seems to be too strong to break.
- Most of the gains made by the bulls on Friday has been taken off
- Now the 20 DMA and 50 DMA is ready to give a negative cross over. So some more down side possible.
- The direction will be decided once the range in hourly chart discussed earlier in this post gives direction
