September 17, 2010

S&P 500 Inverse head and shoulders

  • The Neckline of the inverse head and shoulders pattern has given support shown with the arrows on the right side of the chart.
  • Price is approaching the neckline again. If the correction is limited to the neckline it will be yet another buying opportunity.
  • If the neckline is broken the down move should be limited to 1100 levels, anything below 1100 will be risky for the bulls.

S&P 500 Broadening pattern

  • Broadening pattern of S&P 500. Within the pattern the index was trading in a range of 1118 - 1126. Today it gave a breakout above 1126 but could not sustain at higher levels.
  • Now if the index continue to trade above 1126 another attempt to close above 1130 levels will be made.

Dow Jones futures before opening bell

  • Dow Jones futures broke out yesterday rallied till 10600 levels.
  • Index met resistance at 10600 levels is now retracing may find support at 10550 level. If 10550 level gives support another up move is possible.

Dow Jones futures update

  • Dow Jones futures Hour and daily charts. Hour breaking out of a Diamond kind of pattern. Daily chart breaking out of a triangle.
  • Triangle breakout may take a pause near 10650 - 10670 levels. If futures close or trade above this level, the next big up move in U.S markets will unfold.

Nifty Fibonacci levels

  • Small range of 5866 - 8903 within a big range of 5824 - 5913. Break of smaller one on the upside has all the chances of breaking the larger range. If 5866 NF breaks NF may drift lower to 5824 levels.
  • Nifty futures in a range of 5824 - 5913. Next big move only on a breakout from this range. Range is close to 90 points so we can expect good move when it break out.
  • NF is finding support near 61.8% retrace level of yesterday's fall. If it continues to trade above this level it will be positive for the bulls. Break of 61.8% level can result in consolidation of NF within the range of 5824-5913.

Nifty Intraday update

  • Retrace levels of yesterday's correction. NF seems to be retracing faster than the fall increasing chances of another high being made.
  • May find resistance near 61.8% retrace levels

CNX IT Candlestick analysis

  • Candlestick pattern at the top looks weak for CNX-IT.
  • Trading below 5 day ema can give good correction.
  • Look how the day opened below yesterday's open and closes below the previous candlesticks opening price, when these at the top of the trend usually gives us warning of an impending correction. 

Bank Nifty analysis

  • Bank nifty continues to close above 5 day high ema.
  • But Candlestick pattern seems to suggest some weakness. We have a shooting star in the daily chart. The long tail suggest selling at the top of the trend. But as all candlestick patterns this one too need confirmation.
  • Trading below 5 day high ema can give a chance for the bears.

Nifty daily analysis

  • Nifty has shown the first sign of weakness yesterday with a negative closing. But bulls need not worry unless price falls below 5800.
  • Price is trading in a narrow channel. Staying within this channel nifty can achieve 6000. Falling outside it and trading below 5800 can give good correction.
  • The indicators as shown in the second chart is showing OB condition. But this is typical of bull market were these indicators can remain here without giving any meaningful correction. Only hope for bears is to bring price below 5800 and create some panic for the bulls.

Dow Jones analysis after closing bell

  • Triangle in Dow Jones futures daily time frame has given a clear breakout.
  • Hour chart too has given a good move from the diamond pattern.
  • Dow Jones spot has closed above the range in which it had been trading in.