- SPY daily chart is showing a bullish moving average crossover. 20 has gone above 200 DMA.
- Last week closing was above 61.8% Fib level . Trading above this level will increase the chances of going up to 78.6% level(117).
October 3, 2010
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- The Diamond pattern and the spinning top Candlestick pattern may be able to stop the bulls from trading above 10960 levels.
- Diamond pattern is a bearish one so this one needs some help from the spinning top pattern as well. But if price starts trading above 10960 the above Scenario will be invalidated.
- Last week price got resisted at the 78.6% Fib level. So a good volume breakout above this level will be good news for the bulls.
- 165 area seems to be a big resistance area for reliance power.
- The weekly chart which is the first one shown here is showing an ascending triangle kind of pattern with one false breakout towards the upside.
- And now the stock is approaching the apex of the pattern again. Last two weeks it tried and failed at 165. If Price breakout above 165 being the second attempt out of the ascending triangle, stock may succeed with a legitimate breakout.
- But crossing 165 will be a tough task, If one watches the channel that is developing in daily chart we can get a clue to which side this one is going to breakout.
- INTRADAY CHART FOR RELIANCE POWER
- ACC limited is finding resistance at 1020 levels.
- Unless the stock takes out 1020 area with good volumes good up moves cannot happen from here.
- If it comes back to 1020 level watch if the stock is able to cross this are if not one can go short with a small stop loss.
- S&P 500 Weekly chart has given a spinning top. Spinning to at the top of the trend is a sign of indecision. The colour of the candle is opposite to the prevailing trend of the market.
- Having said that SPX has very good support at 1130, So big down moves can be expected only if that level breaks. A breakout to the upside will be clear only when a daily candle closes above 1150.
- Current week candle has closed above 61.8% Fibonacci level. So if price remains above this level during next week a rally towards the 78.6% can be expected. Break of 61.8% level may push the price towards 50% Fib level.