July 8, 2011

DOW JONES Analysis after closing bell

  • Dow Jones 30 Minutes chart shows price moving up in a channel the smooth up trend yet to be challenged.
  • Hour chart shows price trending up above shorter period moving averages and ichimoku cloud.
  • Hour indicators have started to show negative divergences and weekly resistance is at 12875 level. In all likelihood price will test 12875 level and then start the correction.

July 7, 2011

SPY Starting to Diverge

CHART-II
  • Negative divergence was updated yesterday in the below chart.
  • Today it showed its effect. if today's GAP does not fade we will see an Island reversal pattern
CHART-I
  • Price is starting to show negative divergence in smaller time frame charts
  • But price continue to make new high's which is the problem for bears.
  • Price was closer to the cloud yesterday But the hope of a correction vanished with today's GAP
  • If Negative divergence plays out today's GAP may get faded partially which will give a negative daily candle.

ES Breakout - Will it sustain?

CHART-II (UPDATED)
  • Price fell below 1343 and a correction followed as discussed below.
CHART-I
  • ES breakout of a broadening pattern.
  • But hour charts are developing negative divergence.
  • So price should stay above the Mega Phone for the breakout to sustain.
  • Price falling below 1343.50 can give sharp correction.
  • S&P 500 NEAR THE CLOUD

NIFTY EOD UPDATE

  • Nifty closes exactly at the trend line for the 3rd time.
  • If history is going to be repeated it self we will see bearish days from here.
  • If price sustains above the resistance line we move higher towards 5800.

NIFTY Line chart analysis

  • Nifty line chart shows a breakout above the broadening formation.
  • Now this breakout should sustain and follow up buying should take nifty above the Blue dotted resistance line.
  • If it fails to cross the resistance line and retraces into the broadening formation it will be trouble for the bulls.
  • So Bulls need a close above the resistance line.
  • Bears need to push price back into the broadening pattern.
  • ASCENDING TRIANGLE OF US DOLLAR

BANK NIFTY Analysis

  • Bank Nifty got resisted at 200 DMA.
  • 2nd chart shows price getting resisted at a trend line. Nifty is also getting resisted at a similar trend line. Any up move will be possible only if Bank Nifty and Nifty stays above this TREND LINE.

S&P 500 Near the cloud

  • SPX 30 Minutes chart with ichimoku cloud.
  • Price is approaching the cloud.
  • Price in all likelihood will make another up move after hitting the cloud.