September 16, 2010

Dow Jones Hour chart Breakout

  • Dow Jones Futures has given a breakout from the diamond pattern.

  • Dow Jones futures hour chart is taking the shape of a diamond.
  • Diamonds are known for their bearishness. But Dow Jones and SPX in their daily chart are consolidating for big breakouts So this one can go in any direction.

S&P 500 Broadening pattern

  • S&P 500 is trading in a broadening pattern. The above chart is of 30 minutes time frame.
  • Within the pattern it is trading in a range of 1118 - 1126. Once this range gets violated, index will move towards the support or resistance lines.

S&P 500 Futures before opening bell

  • S&P 500 futures 4 hour chart with an  inverse head and shoulders pattern. Price is trading above the neckline is yet to give the big breakout.
  • After crossing the neckline price is trading in a range of 1108 - 1122. It seems the index will test the weak bull and the weak bear before taking the next big direction. The violation of the range may give good direction.

Nifty Hour chart analysis

  • 5824 NF seems to have given support for now. Closing above this will be good for the bulls.

  • Today's bullish Hour candle being engulfed by a bearish one. It was a result of a doji that stood between the bull and the bear

  • The hour candle has given a doji which has come at the top of the trend.
  • Bulls are safe if NF trades above 5824

Nifty Futures Intraday Update

  • NF has broken the resistance zone.
  • NF will target 5900 today.

Nifty Intraday update

  • Nifty 15 Minutes chart is showing a resistance zone from which selling is happening for the last two day's.
  • So Trading above this area will be very positive for the index and NF will try to cross 5900 above this resistance zone.

Nifty daily analysis

  • So what is the target of this weekly channel breakout?
  • The Broad range nifty was trading before the channel breakout was about 600 points.
  • The breakout happened at 5620 levels.
  • So even if one Trades for 300 points he should wait for 5900 to come.

RELIANCE INDUSTRIES Technical analysis

  • Reliance is trading above 1007. Above 1007 stock can target 1030.
  • 1007 and 993 should act as support now.
  • Fresh longs are not suggested. But those who are long from 958 levels can hold with T S L.

Bearish Engulfing in TATA MOTORS

  • Daily chart of tata motors is showing bearish engulfing pattern.
  • Now if the stock closes below 20 dma, stock may come down to 1008. Below 1008 stock will see some more correction.
  • One should wait for the sell signal to come. We can't enter a trade just because of bearish engulfing, But price confirmation is the most important criteria.

Dow Jones analysis after closing bell

  • First chart shows Dow Jones trading above its 10 and 50 DMA. 
  • Now Bulls should be worried only if the price closes below the 10 DMA.
  • The 2nd chart shows the Dow Jones Futures chart Breaking out of a triangle. IF Dow Futures sustains above 10500 it will favour the bulls.