December 1, 2010

S&P 500 price action above the cloud

  • Ichimoku cloud in four hour time frame.
  • Cloud in four hour time frame has given resistance till now.
  • Price has broken and is trading above the cloud. If the day closes above the cloud it will confirm a short term trend reversal.

GOLD Chart analysis

  • Gold crossed 1400 as discussed in the below chart.
  • If Price sustains above 1400 Gold may test the all time high(1424) again.
  • Gold if sustains above 1387 will give a rally to 1400.
  • Dropping below 1380 and 1376 will be negative and may attract selling.

Dow Jones falling wedge breakout

  • Dow Jones daily chart with falling wedge breakout.
  • Chart is showing resistance at 11210.
  • Breaking above it and closing above this level will favor bulls for resuming the up trend.
  • Getting resisted at this level will attract selling again.

S&P 500 Before opening bell

  • ES Daily chart with price breakout above the resistance line.
  • But price should sustain above 1197and 1204 for this up move to last longer.
  • Things will favor bulls if price closes above 1197 or 1204.
  • Getting resisted near 1197 will attract selling.

Dow Jones Futures chart analysis

  • Price is trading near the resistance line of the falling wedge pattern in dow jones futures.
  • Price is approaching the 38.2% and 50% Fibonacci levels which may also act as resistance levels.
  • Up move can continue only if these two Fibonacci resistance levels are taken out. That also means a breakout from the falling wedge pattern.

Resistance levels of nifty futures

  • Nifty Futures four hour chart with resistance lines.
  • For nifty to continue this upward momentum it should cross the black trend line and the resistance at 5975 area.
  • Looking at the resistance around 5975 area i feel a daily close above this level is what's required for a sustained up move to happen

Nifty Daily Analysis

  • The falling wedge and the descending channel has given price action in favor of the bulls.
  • But as shown in the 3rd chart the Fib levels of 38.2% to 61.8% are good resistance areas.
  • 4th chart shows 20 and 50 Day Moving Average doing a bearish cross. But Nifty is getting support from 100 DMA which has to break for the bearish cross to work.

Dow Jones analysis after closing bell

  • Dow jones closes below 50 DMA once again. 
  • Bulls may try to find support below 50 DMA for an up move.
  • If yesterday's low is not broken this week, we may see a bounce from here.
  • Price is showing a falling wedge pattern which is a bullish reversal pattern. But breaking the recent low would result in continuation of the trend and an invalid pattern which will work in favor of the bears.

S&P 500 Triangle pattern

  • S&P 500 Thirty minutes chart in a triangle pattern
  • Price is trading near the apex of the pattern.
  • Breakout from this pattern can give good direction if the levels mentioned in the chart are taken out.
  • Good upward momentum above 1190. Breaking below 1180 will favor bears.