November 17, 2010

APPLE near support area

  • Oversold stochastic shown yesterday has given a gap up for Apple.
  • Support at 300 has stopped the correction for now. Closing near the high will confirm the reversal. 
  • Apple looks oversold and trading near important support level in daily chart.
  • Supports for the stock is at 300 and 294.
  • It is trading above 300 with oversold stochastic readings, this should give a meaning full bounce from here.

SPY Support and resistance levels

  • Price fills the GAP and trades above 200 hour moving average.
  • If price sustains above 200 hour moving average price will take out 120.66.
  • Channel support line is acting as resistance as discussed in the below chart.
  • Only if price moves above 118.70(day high) some upward momentum can be seen.
  • If SPY is to move up price has to break through multiple resistances.
  • First one is the channels support line from which it broke down. Then if it manages to go up the 200 hour moving average will be the next hurdle.
  • If the 200 hour moving average is taken out then the GAP will be faded.
  • On the contrary break of 117.59 will be negative and take SPY to new lows.

SILVER chart with falling wedge

  • Falling wedge breakout is taking out all resistances.
  • One can keep the trend line as trailing stop loss for the longs taken at breakout.
  • 26.50 which was the previous support area is acting as resistance now.
  • Further up moves can only happen if this level is taken out convincingly.
  • Breakout of wedge has worked in favour of the bulls till now.
  • Silver hour chart with falling wedge pattern.
  • above 25.86 bulls will get good upward momentum and may hit 26.50 and 27 in the short term.
  • Below 24.98 things will turn negative again and bears will gain momentum.

Dow Jones futures before opening bell

  • Dow Jones futures is trading in a range of 10940 - 11026
  • Hour chart is also showing the possibility of a small ascending triangle.
  • Breakout above 11026 will be positive.
  • Breaking the blue support line will drag the price towards 10940. 

S&P 500 Futures update

  • ES Hour chart shows a range of 1170 - 1180.
  • Breakout from this level can give good direction.
  • 2nd chart shows the large deviation of price from 200 hour moving average.
  • So we may see a sideways consolidation to catch up with the 200 hour moving average or a pull back towards the moving average to reduce the deviation.

S&P 500 Analysis after closing bell

  • Weekly stochastic has given a sell by dipping below 80% line.
  • Similarities in weekly chart looks interesting a repeat of the last sell off may happen.
  • 1150 levels may act as support in case if it goes there. Above 1150 we have the 50 DMA which may hold the index from going down as well.

Dow Jones daily chart with 50 DMA

  • Dow Jones daily chart with 50 Day moving average
  • Price takes a pause just above 50 DMA.
  • This moving average may stop the bears for sometime.
  • The problem for the bulls is the momentum of the price, All supports are are being broken easily. But price will take a pause for sometime and may be a small up move is also possible from 50 DMA.