- Microsoft corp is trading near an important weekly trend line.
- Violation of the trend line can give good correction for the stock.
- The second chart shows the Moving averages for the stocks. Stock is trading below its 200, 50 and 20 DMA.
- So a reversal in Weekly chart can only happen when the stock closes above 20 and 50 DMA in daily chart.
- 23.4 is very important support for the stock. Break of this level on closing basis will favour the bears.
- Bank nifty continues its up trend trading within the weekly channel.
- The current move may find resistance at the top of the channel.
- This post is the continuation of bank nifty analysis that was done last week were the upside possibilities and range of bank nifty was clearly mentioned CLICK HERE TO SEE IT.
CHART - II
- As we discussed below reliance has achieved 993. Now if the stock continues to trade above 993 first target would be 1007 above that it can target 1030
CHART - I
- Reliance industries is trading at an important level at 958.
- Stock is also trading near its 20 DMA.
- Trading above 958 and 20 DMA stock can target 993. But the stock is finding it tough to move away from its 20 DMA.
- Smaller time frames are showing a range of 951 - 969. A good close above or below this range can give good direction for the short term.
- Gmr Infrastructure is in a triangle pattern in weekly chart.
- Stock is approaching the apex of the pattern. So the pattern may give a breakout soon.
- One can keep the stock in watch list for future trading opportunities. Enter towards the side of the breakout with a small stop loss.
- SPY is trading above the resistance line in daily chart as shown in the first chart. Now if this is not a fake breakout the index should target 113.
- The second chart shows the fib retrace levels of the index in daily chart from 122 - 101 levels. Currently the index is trading near 50% retrace level. If SPY start trading above 50% levels the first target is the recent high at 113.
- ASCENDING TRIANGLE OF S&P 500
DAILY CHART
WEEKLY CHART
WEEKLY LINE CHART
- S&P 500 has closed above its 20 and 50 DMA. The index is approaching its 200 DMA.
- The weekly chart also has the negative cross of 20 week going below 50 week.
- But in the short term this may not be effective since the index has closed above 50 week moving average we may get a small rally from here.
- If the pattern in the weekly line chart performs to potential the small rally can become big. The pattern comes with huge upside potentials.
- ASCENDING TRIANGLE OF S&P 500
- Nasdaq 100 futures is trading near an important resistance line.
- RSI is also approaching 62 levels from were correction started in the recent past.
- One should wait for one or two negative candles to appear for going short with a small stop loss. Here risk reward ratio is favouring a short sell.
- If a breakout happens RSI should also go above 62 which can take the index above 1950 atleast.
- ASCENDING TRIANGLE OF S&P 500
