Stock Market Chart Analysis

March 1, 2011

Fibonacci levels in 15 minutes chart.
Price has taken support at 50% level for now. For an up move to happen price has to sustain above 38.2% level.
Breaking below 50% will lead to 61.8% Fib level.

Moving averages for ES are aligned bullishly in hour chart. 20 hour moving average is back above 50 hour moving average.
If price sustains above 20 hour moving average bulls can extend the gains.
Dip in prise may get supported by the 50 hour moving average.
ES hour is also showing a channel formation which is also supporting bulls.
For bears they should try to break the 50 hour moving average for creating a good shorting opportunity.
DOW JONES ANALYSIS

Reliance industries is not able to sustain above its 50 day moving average.
Only a strong close above 50 DMA can give upward momentum for the stock.
Stock is stuck between its 38.2% and 61.8% Fibonacci levels. Violation of these levels on closing basis can give good direction.

ES Fibonacci levels shows price above the golden ratio(61.8%). If price sustains above this level we may see 1330 levels shortly. Breaking below 61.8% will be negative for the bulls.
Price sustaining above the cloud will favor bulls.
Hour chart shows an inverted H&S kind of breakout, for this to sustain 1320 level should be protected by the bulls.
DOW JONES WEEKEND UPDATE

Long term picture will favor bears as long as nifty trades below 50 week moving average.
We may see wild swings today because of the news. So it would be wise to trade based on closing values.
5369 can be kept a the balance of power for bulls and bears.
Closing above 5369 will favor bulls and break below 5177 will favor bears.
TATA MOTORS TREND LINE TOUCH

Dow Jones hour chart shows 12150 as a crucial level for bulls to cross.
Fib level too shows 38.2% level coinciding with 12150 area. Price closing and sustaining above 38.2% may give another up move in the coming week.
Daily chart candlestick pattern shows bullish possibilities. Thursday's candle gave a long shadow which shows buying at lower levels This was followed by another positive candle which resulted in bullish engulfing pattern.
Now for the bullish engulfing pattern to work price need to trade above 20 day moving average. A convincing trade above 20 dma can take dow to 12230 levels.
11980 level may act as support in the short term..
APPLE WEEKEND UPDATE

First chart is the daily chart of apple with 20 day moving average.
Dips below 20 day moving average has been marked. Dips has not lasted too long.
The effort of bears to sustain price below this moving average seems to be failing again. If price closes above 20 day moving average we will see yet another up move.
Important levels for bulls to cross and close above is 348.50.
Hour chart is filling a GAP if price closes above 50 hour moving average after filling the GAP things will favor bulls. Getting resisted at 50 hour moving average after filling the GAP may give a short trade in favor of bears.
SPY RESISTANCE LEVELS