September 14, 2010

S&P 500 Inverted Head and shoulders

  • S&P 500 futures 4 hour chart is showing an inverted head and shoulders pattern.
  • Price is trading above the neckline. Now the pull back towards the breakout area is going on, If the correction is not large the pattern should give good up move in the coming day's.

Dow Jones tries to breakout

  • If Dow Jones futures closes above 10520 level it will confirm an important trend line break or a triangle breakout.

Dow Jones futures before opening bell

  • Dow Jones futures 4 hour chart is in a triangle which will give direction soon.
  • In daily time frame the index is resting on the upper trend line of a larger triangle.
  • Price has been trading here for sometime now without any major direction, so this pattern in 4 hour chart may give good direction for the index.

Nifty futures one minute chart

  • NF moved sideways for most of the day without giving proper direction.
  • One minute chart is showing a range of 5795 - 5823. It seems this range will be cleared only tomorrow morning till then this sideways movement will continue

Trend line in 5 minutes chart

  • NF has broken the trend line.
  • NF With resistance and support lines.
  • Trend line has been giving support for 2 day's now. It is also trading near resistance line. Break on either side can give good direction.


  • Nifty futures has been finding support on the trend line formed yesterday.
  • Now price is resting on the trend line.
  • We shall see how price reacts from this trend line. closing below it can give good correction. If Price gets support the larger trend will continue

Nifty daily analysis

  • The first chart shows the broadening pattern breakout. But few day's back we discussed it as a triangle pattern happening in reverse order  CLICK HERE TO SEE IT.
  • Second chart shows the breakout that happened at 5350 and the importance of that breakout. 5350 was never broken on closing basis and who ever had the guts to buy on dips must have made big profits.
  • One should trade breakouts with calm. If a breakout happens don't rush. most of the breakouts gives an opportunity by pulling back to its breakout area. In this case nifty retested 5350 nearly 3 times. 

S&P 500 Analysis after closing bell

  • Daily chart is trading near resistance levels.
  • When the index hits 1130 it is a triple top formation provided the price starts falling.
  • Weekly chart is showing an inverted head and shoulders pattern. So closing above the neck line will be positive.

Dow Jones futures 30 minutes chart

  • Dow Jones futures is trading in a range of 10422 - 10503.
  • Breakout from this range can give good direction.
  • Breaking above 10503 means another attempt to break out of the big triangle in daily chart mentioned in this POST.
  • Breaking below 10422 will be negative for the bulls and will remain inside the triangle formed in daily chart.