- Bulls can attempt a bounce trade with small stop loss.
- Bears are hoping for a close below 50 Week SMA.
- Crucial price level for both sides. Break below this level on closing basis will confirm a Medium term Top in Leading Indices. Bulls are desperate to avoid such an event.
- One hour trying to hold above the trend line.
- Ichimoku cloud too is trying to give support for bulls.
- Hourly candlestick is a bullish Doji. Current candle must close in green to confirm strength.
- One hour is in a bullish channel. For now price has fallen to the bearish part of the channel.
- Daily candle is a PIN BAR. This candle does need confirmation with a lower opening and a red candle for a possible down swing to start in Daily time frame.
- 30 Minutes continue to stay on the cloud. If price does not fall below the cloud another bounce above 2800 levels can happen.
- ES Daily time frame shows price pausing at the 78.6% Retrace level and the upper Bollinger band. These 2 levels may act as resistance.
- For bulls the 30 Minutes cloud is acting as support. For the bearish set up discussed above to work they need to break below the cloud. For now though bulls trying to do a lift off from the 30 Minutes cloud.
- SILVER Multi Year support line and weekly triangle
- Nifty bulls found enough velocity to move away from 200 SMA. But price is approaching crucial resistance zone between 50 and 100 SMA.
- Nifty weekly chart shows Middle bollinger band at 10483. This is the next resistance zone for nifty bulls to close above. Weekly close above this zone may confirm strength. An intra week violation is not enough...
- GOLD Support zone and Rounding Top
- Silver weekly chart shows a bearish descending triangle. But one look at the Month candle shows price near the Multi year support line. So a breakdown from the triangle could end up as a false one and price may take support at the Monthly support line.
- One other view is very bearish. Month chart is showing a Head and Shoulders pattern starting at Year 2005 to 2018. So a breakdown from this pattern may lead to a melt down in silver prices.
- GOLD Support zone and Rounding Top
- Price is staying near 200 SMA. No big reaction yet from 200 SMA. If price stays around here without a fast bounce then it increases the chance of a breakdown.
- Add to that price is staying below crucial moving averages. Any bounce will find it had to cross 50 and 100 SMA. So the bounce which if happens should happen with big momentum for bulls to back in control.
- Month is trying to form a symmetrical pattern. I hope for the sake of small investors that the left hand side is not equal to right hand side. Bulls can change this scenario by changing the colour of the current month candle, which is going to be difficult.
