July 12, 2010

Dow Jones 5 minutes chart in a triangle

  • Dow jones 5 minutes chart seems to be trading in an ascending triangle.
  • A Break out on the upside should give at least 30 points.
  • Break down on the lower side should bring it below 10180

Dow Jones retracing to the 200 day moving average

  • The death cross has not given anything for the bears till now.
  • But the rally if stops before 50 day SMA or 200 day SMA will give the bears a chance to go short aggressively.
  • For the bulls a strong breakout above 10200-10300 may take it till 10600 levels again.

Dow Jones trading near 50 week moving average

  • Dow Jones is trading near its 50 week moving average.
  • If this resistance is taken out on closing basis the index can move to the next band of 10300-10400 level.

Microsoft corp trading near resistance area

  • Microsoft stock is trading above a trend line in daily chart. It is respecting the trend line till now.
  • Between 24 to 25 the stock will hit the channel top resistance. and a band of resistance in the same area.
  • So at 25 one can try to go short with a small stop loss. The risk reward ration seems to be good if one go short near the channel top

I Shares Russell 2000 index weekly chart

  • I shares russell 2000 index weekly chart is shown with a support line.
  • Look how many times the index has taken support at the line.
  • When the index approaches this line one can take a trade with a good risk reward ratio.

A Doji at the top of the trend

  • Nifty has formed a doji at the top. It can be classified as a Spinning Top as well. What ever it is the pattern is showing indecision between buyers and sellers at the top of the trend.
  • If bearish candles follows the trend will turn negative.

Nifty 15 Minutes Chart with Support and Resistance Line

  • Nifty 15 Minutes Chart showing  Support and Resistance for the index. 
  • If the price closes within this pattern another gap up or gap down will play out to decide the next direction.

Nifty spot chart with Hour RSI

  • The Hour chart trend line is holding nifty up.
  • But if nifty goes up to the recent high above 5400 the hour rsi will start developing negative divergence.
  • RSI has already broken its hour trend line.
  • To negate this short term negative picture nifty should close above its day high.

NIFTY 5 minutes chart

  • Nifty is trying to fill the gap.
  • If the bulls are stronger the price should close above the gap. 

Nifty consolidation and break outs

  • See how nifty makes a consolidation pattern in hourly and gap's up in the morning.
  • The hour consolidations did not give an intraday entry.
  • The hour chart formed a base pattern when it was trading around 5235-5240. And from there it gaped up. then two consolidation patterns which gave break outs by gap ups.
  • So conclusion when in an up trend hold on to your long positions with trailing stop losses and booking partial profits. 
  • Nifty weekly chart analysis.
  • Bank nifty resistance zone

CNX IT Daily chart raising wedge


  • CNX IT may find resistance at the top of the raising wedge.
  • A Breakout of top trend line should be watched carefully for a false break out.