November 18, 2010

US Dollar Index Hour chart violates the trend line

  • US Dollar index violates the trend line in hour chart.
  • The up trend in hour chart is still intact. Only if the hour starts trading below 78.50 the up trend in hour chart will be challenged.
  • The break of the trend line shows weakness in chart but if price breaks out above the resistance line in red the up move will continue. 
  • Resistance for the index is at 79.58 and support at 78.50

Russell 2000 fills the GAP

  • Russell 2000 has filled the gap between 712 and 716. But in the process has created another GAP between 706 - 711.
  • Green line may act as resistance. But breaking above that line will favour the bulls.
  • If price gets resisted at the green line and falls back below 716 then today's GAP will be faded. 

S&P 500 futures before opening bell

  • ES has given a breakout from the descending channel.
  • If Price sustains  above 1194 Next target is 1201.
  • ES made a re-entry into the descending channel.
  • Price is near the upper boundary of the channel.
  • If a breakout happens price should sustain above 1194 for a bigger up move to happen.

Nifty Futures Intraday update

  • An ascending Triangle with a Descending broadening wedge.
  • These are reversal patterns. But The hourly trend is down so unless the reversal is confirmed it will be risky to go long.
  • For the day 6042 was never crossed convincingly. 6050 and 6145 are resistance to cross for bulls to gain strength.

Descending broadening wedge of nifty

  • Nifty Futures getting resisted near 6042 that is the day high and price is trading near the main trend line which may also act as resistance.
  • So any up move can happen only if these two levels are taken out.
  • Break of 5972 which was the low of this week gave 5921.
  • Nifty futures could not sustain above 6025. 
  • Index tested 5972 and has taken support there But if it gets tested again this level may break and will give a new low for nifty futures.
  • Descending broadening wedge pattern in nifty futures.
  • This is a consolidation pattern that appears in a an up trend and results in a resumption of the earlier trend.
  • The current up move may find resistance at the down trend line.
  • Support for NF is at 5972 intraday longs will be safe above 6025. important resistance at 6144.

TATA STEEL support and resistance levels

  •  Fibonacci levels of tata steel shows support at 38.2 levels. Break and close below it again may push the stock down to 50% levels.
  • Line chart shows support for the stock at 588 and 576 and resistance at 668.
  • Line chart also shows price converging between support and resistance lines which can give a breakout in the coming weeks.

Nifty daily analysis

  •  Nifty takes its first step on to the cloud. Closing into the cloud will be signalling more weakness. But a bounce from here may give hope for the bulls.
  • 5930 - 5940 area is the important support for this down move.
  • Nifty continues to close below 5 day low ema. Sell on rise will continue until nifty closes above 5 day high ema. If price moves too far away from 5 day low ema one can see a small rally to reduce the deviation.