Stock Market Chart Analysis

March 29, 2011

ES Hour chart with broadening patterns.
First one gave an upside breakout.
The current pattern will favor bulls if price starts to trade above 1317.50 level.
The resistance line may not get cleared at one go. As in the first pattern look for a hit on the upper resistance line followed by a partial decline for going long.

MACD and price is showing negative divergence in 15 minutes chart.
But price has to confirm by giving a correction which has not happened yet.
If price continue to create higher high's Negative divergence will not be valid.

Nifty is overbought and at resistance level. But if price manage to close above 200 DMA the indicators has to stay overbought for some more time while nifty moves towards 5900.
If the channel resistance around 5700 comes into play bears have a hope. But if that is to happen we will see one or two negative daily candles this week.
So the best approach for those who does not have a position would be to watch the 200 DMA drama unfold and enter when the direction becomes clear.
DOW JONES RESISTANCE LEVEL

SPY Hour is consolidating above 200 hour moving average and the trend line.
If price continue to stay above the MA and the trend line an upside breakout will happen.
Price falling below 200 hour moving average and the trend line in hour chart may turn the short term trend in favor of bears.

Dow jones daily chart is shown with the resistance area of 12000 - 12300.
Bulls are about to clear this level. Price has made a fast rise from the recent fall. Earlier price took support at the base of Ichimoku cloud as shown in the chart.
If price closes above 12300 the upward momentum will gather momentum.
Failing to clear this level on closing basis will favor bears.

30 Minutes chart of SPY shows price trying to fill a GAP formed during the start of this month.
GAP will be filled at 132.22
5 Minutes chart will favor bulls if price sustains above 131.87.
Unable to cross 131.87 will favor intraday bear.