November 1, 2010

S&P 500 Support levels

  • Trend line drawn in the below chart has broken.
  • Important supports for the day are 1183 - 1181 and  1177.
  • S&P 500 Fifteen minutes chart with support at 1185 and the Trend line which may act as support
  • Break of 1185 and the trend line will favour bears.
  • Staying above 1185 and 1187 will favour bulls to go up again.
  • Dow Jones Triangle UPDATED

Dow Jones Triangle Breakout

  • Bearish candle mentioned below has worked for the bears.
  • Now a retest of the triangle resistance line is going on. This may be followed by another up move unless price enters the triangle to create a busted pattern.
  • Dow Jones hour chart gave a breakout from the triangle pattern.
  • Now the index should trade above 11215. There is good resistance in hour chart from 11215 - 11250.
  • Last hour candle is a bearish one we may see some intraday weakness here.
  • If price goes above 11215 it will favour the bulls again.

S&P 500 futures before opening bell

  • ES Testing 1189 again. If price closes above 1189 and sustains above 1192 we may see 1195 and 1200 in the short term.

  • ES showed good momentum today but is not able to sustain above 1189 levels.
  • Closing above 1189 should give some more momentum for the bulls.
  • 1181 level should act as support for the index.  Slipping below 1181 will give bears the upper hand.

Nifty Futures Fibonacci levels

  • 61.8% Fib level for nifty futures is at 6178.
  • In the one hour chart posted the resistance was shown at 6175.
  • So any up moves are possible only if the index breaks out above 6175 - 6180 region.
  • 50% Fib level is at 6137 Break below this level will be negative for intraday.

Nifty Futures Intraday update

  • NF Got resisted before reaching 6175. Today's high as of now is 6160. Hour stochastic has reached the overbought zone. 
  • So upsides may be limited to 6160 - 6175 today. Price may remain in a range of 6099 - 6160 to 6175.
  • Nifty Futures did a gap up today. Gap between 6061 - 6099 is yet to be tested.
  • Nifty futures has broken the main down trend line. If remains above above this line will start moving up. NF also should stay above the GAP for favouring the bulls completely.
  • Next Main resistance is at 6175. NF will gather good momentum above 6175.
  • One can stay long as long as today's GAP  is not tested.

CNX IT Near 50 DMA

  • CNX IT Structure looks bearish, a Head and shoulders has formed. Pattern is not a perfect one.
  • Price breaking down from the neckline may get support from 50 DMA and the index may start moving up.
  • The head and shoulders will work only work if price breaks down below both the neckline and the 50 DMA.

Nifty daily analysis

  • The first chart shows nifty line chart taking support between 5950 - 6000 area. In fact nifty has made 4 attempts to go up from this area.
  • second chart shows nifty approaching 50 DMA. The chart also shows the important support of 5932 the down trend line and 50 DMA all at one place. So some action can be expected from this area

DOW JONES Weekend update

  • Dow Jones Weekly and hour chart.
  • Weekly chart shows the price at 11250 region with weekly RSI.
  • Last time Dow went to 11250 levels and came down from this level, at that time weekly RSI came down from above 70%. This time too at 11250 area weekly RSI has started to decline. 
  • If price starts to correct weekly RSI will give a clear sell. But this scenario will be invalid if dow gives a good breakout above 11250 and then the overbought RSI levels will stay overbought for sometime.
  • The hour chart has been trading in a triangle. Price is near the apex of the pattern. Breakout from this pattern will give us a clue to which side Dow is going to go in the short term.