- There is a small negative divergence developing in Dow Jones
- But the index is trading at 10600 area from where it went down to 9614.
- So If the bulls are strong they have to break 10600 and should make a firm close above it, and then the negative divergence will vanish in no time.
- So from here both trades are possible. wait for proper direction.
- Reliance industries ascending triangle in daily chart.
- Price is trading near the bottom trend line. Break down of the trend line can pull the stock down to 970 areas.
- If the trend line gives support the stock can move above 1070 levels in the coming days.
- NIFTY DAILY CHART ANALYSIS
WEEKLY CHART
- The raising wedge in daily chart is still valid. the morning may get a minor gap up because of the U.S. markets.
- But any drastic changes in RBI policy can bring the raising wedge in to action.
- Nifty closed between 5 day high ema and low ema.
- But the index is still trading above its 20 day sma. and as long as it stays above the 20 sma bullish moves are possible.
- I have also shown the weekly candle. Right now it looks weak but we have four more day's to go in the week and a move above 5450 can turn the candle to a positive one.
- But staying below 5400 and 5350 will not be good news for the bulls.
- S&P 500 ANALYSIS AFTER CLOSING BELL
- S&P 500 index closed up 12.35 points or 1.12%.
- Dow Jones closed up 100.81 points or 0.97%.
- So both major indices making nearly a percentage gains.
- The first chart in this post shows the S&P 500 closing above its 200 DMA. I was expecting a close below this average today. But bulls were too strong.
- The index has also closed at the 50% fib retrace levels of its recent fall from 1219 to 1010. So a successful close above this level tomorrow can take the index to 61.8% retrace levels in the coming days.
- S&P 500 is trading near its 200 DMA and it is trading below an important trend line.
- So the index should face some resistance before it tries to break the 200 DMA.
