- Gold moving towards its 50 Week Moving average.
- Price breaking below 50 Week SMA will lead to the support line of the channel.
- Only if price breaks the channel support line the bullish structure of gold will get tested. For bulls of Gold the channel should hold to avoid a bigger correction.
- Four hour chart is shown with a contracting triangle with price near the support line of the triangle.
- If price gets support at the line and 200 period SMA then an up move is possible in crude.
- Price closing below 200 period SMA may lead to a deeper cut in crude oil.
- S&P 500 ANALYSIS AFTER CLOSING BELL
- Nifty four hour chart shows immediate support for nifty between 4720 - 4728 level.
- For bears to have big gains they have to break below 4720 and 4639.
- If 4728 is protected by bulls They will move towards 5099 or above as happened in the recent past.
- Monthly chart with 20 SMA and Daily chart with 50 SMA is favoring bears right now. Price is holding above crucial moving averages in these time frames But is likely to break below it.
- Four hour chart is shown with Ichimoku cloud. If the cloud breaks then bears will be in control.
- Only hope for bulls is the last chart For this one too the handle should not retrace more than 50% for this pattern to work effectively. So today's low should be protected by bulls. Breaking today's low may lead to correction till Golden ration.
- ES Four hour chart shows a bearish cross with 20 and 50 period SMA. If price stays below 20 period SMA bears will be stronger.
- For bulls to negate this bearishness they have to break above both 20 and 50 Period SMA.
- Price is also moving ave 200 period SMA. Staying above it will favor bulls. For bears price has to break below 200 SMA and yesterday's low to extend gains.
- S&P 500 ANALYSIS AFTER CLOSING BELL
- CRUDE OIL ANALYSIS
- Daily chart shows a trend line which acted as resistance previously is acting as support now.
- For bears of crude oil this line should be broken on closing basis for a correction to happen.
- Four hour chart shows price near 200 Period SMA. If price gets support here an up move is possible in crude oil.
- S&P 500 ANALYSIS AFTER CLOSING BELL
- Lower Bollinger bands in weekly and daily charts lies closer to the recent lows. Possible sloping support line shown in second chart. So Price may bounce from these levels.
- But the scary picture for bulls is the weekly line chart which shows the perfect down trend. If price breaks the recent weekly lows on closing basis its not good news for bulls.
- If 4639 is tested bulls need to defend it on closing basis.
- S&P 500 EOD ANALYSIS
