September 1, 2010

Triangle formation of Apple.

  • Apple's daily chart shows a triangle formation.
  • Apple had a break down from this triangle pattern recently.
  • Now the stock is retesting the breakdown area.
  • If the trend line acts as resistance the stock will start moving down.
  • If price re-enters the topic it will be good for the bulls.

SPY Trading in a triangle

  • SPY is finding resistance at 110.
  • If the breakout from triangle does not happen soon, more the chances of hitting 106 level at the bottom of the triangle.
  • SPY daily chart is trading in a triangle formation.
  • If 105 level gives support then SPY may rally towards the top of the triangle formation.
  • So for this trade one can keep a small stop loss at 104 for a target of at least 110.
  • But the main criteria the trend line in which it has taken support now should be held.

Dow Jones futures before opening bell

  • Channel break gives a good rally as discussed below
  • 10240 region is crucial for bulls. any weakness at this region can give a pull back in favour of bears
  • Dow Jones futures is looking positive today. 
  • Index has managed to rally till the resistance line of the channel.
  • Now the area between 10130 - 10150 is crucial. Resistances are strong around here. If price is able to sustain above 10150 a good rally is possible.

Nifty intraday update I

  • Nifty Futures is trading near 50% retrace level of its high(5541) to yesterday's low(5354).
  • So this range of 5430 - 5450 is filled with resistances. There is a trend line resistance too which had acted as resistance in the past.
  • So this is in that in between kind of area were things are not clear. My preference is to go short, but it is best to stay away till things are clear.

Nifty Intraday update

  • If the break below the trend line is a false one the earlier trend which is up can continue.
  • But i have my doubts, If NF closes below the trend line again, yesterday's Low may not be held the correction will be bigger than that.
  • But holding above the trend line will be positive for the bulls.

Nifty daily chart analysis

  • Nifty is forming another broadening formation. Broadening formations are mostly bearish patterns.
  • Nifty yesterday violated 50 DMA. But came back to close above it.
  • 5350 region is crucial as shown in the last chart. If nifty goes below 5350 chances of breaking the support line mentioned in the 3rd charts is higher.

Dow Jones analysis after closing bell

  • Dow Jones is showing a range of 223 points in hourly chart with 9936 as support and 10159 as the resistance.
  • 9936 level has given support 3 times now. 
  • Hour chart is also showing a head and shoulders pattern.
  • Daily chart nearly did a Doji day today. Last hour of trading was extremely tough for both bulls and bears, and in the end the day ended with very little change.
  • 20 DMA and 50 DMA is converging so we can expect some action in the coming day's.

Dow Jones Hourly chart analysis

  • Range of 9936 - 10159 breaks out towards the upside. Minimum target is 10350. But Dow jones at the moment is up by more than 2.50%, so try to enter long trade if a pull back happens.

  • Dow Jones hour chart is showing a range of 10159 - 9936.
  • 223 points towards the breakout point. But the direction may not be that easy to predict.
  • 9936 area has given support 3 times. So an hourly close below this level may not be good news for the bulls.
  • If index gets support at the lower end of the range a good rally towards the upside is possible. 
  • Most important wait for the range to break and give  clear direction before entering into a trade