August 6, 2010

Double top in nifty futures

  • There is a potential double top formation in nifty futures line chart.
  • If the index stays below 5452 will work well. Break of 5426 will give momentum for the down move.
  • If price goes above 5471 the pattern is invalid.


  • Reliance Industries is trading close to an important support line.
  • It is a good opportunity to go long with a small stop loss. 
  • One should also consider the opportunity of going short if the support line breaks.
  • Both trades are possible Safe entry above 1025 go long. Below 975 go short.

Nifty Hourly chart update

  • Nifty futures has resistance at 5471.
  • For the up move to sustain nifty futures should trade above 5471.
  • An hourly close above this level will be good for the bulls. 
  • Failing to cross this level will be bearish in the short term.

S&P 500 Analysis after closing bell


  • The daily candle has given a doji showing indecision.
  • The hourly chart has been doing a side way's consolidation for quite sometime now.
  • The hourly line chart shows the importance of a trend line.
  • If there is a correction from here the trend line may  support the index again.