DAILY CHART
WEEKLY CHART
- Nifty has closed well above 5 day high ema showing strength.
- The bottom trend line of the raising wedge has given support so a rally till the top of the wedge is possible. provided nifty stays above 5 day high ema.
- The weekly chart is also looking strong. The weekly stochastic has entered overbought zone but it is in no mood to turn down. Until it turns down and gives a sell it's a buy.
- U.S. Markets rallied yesterday more than 2% which will help the bulls today morning.
- DOW JONES ANALYSIS AFTER CLOSING BELL
- Dow Jones closed up 201.77 points 1.99%
- Three possibilities of Dow Jones.
- First one is a W formation in line chart of daily time frame. this will be confirmed with a move above 10380-10400 and a close above this range can push the index above 10600 levels.
- The second possibility is the index getting resisted at the 200 DMA. My personal preference too is this one Dow forming an "M" after hitting the 200 DMA and going below 1000.
- The other possibility is a neutral range play for some time because of the lack of clear trend, Dow can remain in a range of 10000-10400 for some time.
- DOW JONES FUTURES BREAKS OUT
- Dow Jones futures 4 hour chart with support and resistance line.
- The index has given a break out. Now the closing should be near the high point of the day for this bullishness to sustain.
- The hour chart of gold suggest that the commodity is in a down trend.
- It is holding on to an important trend line break of which will lead to more fall in gold prices.
- Also see how the geometrical patterns show up in a stocks chart time and again.
NIFTY WEEKLY CHART
- Nifty weekly chart with stochastic indicator.
- The indicator is in overbought zone and is yet to show any weakness.
- Index is also respecting the weekly trend line.
- A Break of the trend line coupled with a sell signal in stochastic should be a good place to go short.
- Dow Jones futures chart with support and resistance lines
- The index is trading near resistance line and it coincides with the presence of 50 hour moving average.
- Break of resistance with strong volume can push the index at least till 10250-10300.
- If gets resisted by the trend line and the moving average will go below 10100.
- Nifty is trading between its 5 day high and low ema for four days now. But the day range is expanding.
- The raising wedges support trend line may keep the index up for some time.
- It is still trading above its 20 day moving average and an important support line shown in the first chart.
- NIFTY'S CHANNEL BREAK TRADE
