- Dow jones today broke an important trend line in the hour chart.
- If the index falls below 10330 bears will become stronger.
- And bulls will try to defend this support zone.
- If this triangle break out is not a false one bulls will gain some strength and try to move higher.
UPDATED CHART
- If the ascending trendline breaks one can go short.
- The set up is in favour of the bears because of the negative divergence.
- Have yesterday's high as stop loss.
DOW JONES HOUR CHART
MOVING AVERAGE
FALLING WEDGE
FIBONACCI LEVELS
- The hour chart trend line has not been violated.
- One can remain in the long trade as long as it is not violated.
- The 2nd chart shows the price closing above the 200 day moving average for the 2nd day .
- The falling wedge break out is working well.
UPDATED CHART
- Nifty is in uptrend in daily chart.
- But i feel this will end soon near 5300.
- The right shoulder of the head and shoulders pattern has started forming.
- By keeping 5330 as stop loss one can start shorting in small quantities when nifty touches 5280-5300.
- Nifty has broken out of an inverted head and shoulders pattern.
- The volume at the time of breaking neckline has seen an increase.
- The target for this pattern should be above 5300.
FALLING WEDGE
DAILY CHART
DAILY CHART
DAILY CHART
- SP 500 ended the day as a doji day the candles stick pattern that tells us that the bulls and bears are not sure about the direction.
- For the second day the index closed above the 200 day moving average.
- The charts suggest that the move from 1040 is study without any major retracements.
- It looks like the falling wedge break out has some more price movement left on the upside.
- There was an intraday dip due to the hourly negative divergence . But the correction was not up to the levels which was expected because of a prominent negative divergence.
- They say price discounts everything.
- The negative divergence may not have shown its effect till now.
- But one bad news and that becomes the reason for the negative divergence to play out.
- On the contrary the price movement towards the upside has been very strong
- A close above 10460 should make the bulls comfortable and strong.
- But a break and close below 10320 will favour the bears.
- And one more important thing is that if the negative divergence has to play out it should happen within the next 3 to 4 hours. If it does not the divergence will vanish.
