Stock Market Chart Analysis

February 19, 2012

Week candle has broken above the channel. 2nd chart on closing basis shows closing value at Multi year high's.
Week has also closed above 50% fibonacci level. Trading above 35.35 price may target the golden ratio.
SPY WEEKEND UPDATE

Week chart shows next important resistance level at 137.18. Weekly candle closing above this level will add further strength for bulls. Bears need a close below 134 level for confirming weakness.
Daily chart shows price moving in a rising wedge like pattern with negative divergence. But weakness is yet to be seen in daily time frame as can be seen from the third chart. daily candle is yet to close below 10 Day EMA, Price is yet to test 20 Day SMA for the current rally.
DRYSHIPS INC WEEKLY CHANNEL
BIDU WEEKEND UPDATE

Last day of the week saw negative price action with increasing volume.
MACD is showing negative divergence.
Daily time frame is approaching 200 SMA and up trend line which needs to be broken by bears of BIDU for a bigger correction to happen.
DRYSHIPS INC WEEKLY CHANNEL

Price has closed above 50 Week SMA and 38.2% Fib level. Holding these two levels price should either hit the channel top or the Golden ratio near 4.60 shown in second chart.
BIDU WEEKEND UPDATE

First chart shows resistance at 1763 and the weekly channel resistance line which may act as resistance.
correction possible below 1704 or 23.6% Fib level. weekly candle falling below 20 Week SMA should give a bigger fall.

Price near golden ratio and the resistance line of a broadening pattern.
But one has to see that price is yet to show any weakness as can be seen from the 3rd chart. So its important to follow price during such moves to capture maximum points. Especially for those who are long from lower levels its better to have a rising support line or trailing support line and be in trade till they are stopped out.
VIX is near resistance line. Breakout can give correction to nifty. Nifty need to close at least below 10 Day EMA for some weakness to set in. Till then its better to be with the trend.

Four hour chart and month chart shows resistance from 1365 to 1370 levels. Breakout above 1370 will add strength for this bullish move.