December 2, 2010

Powershares QQQ Trust Near resistance area

  • QQQQ is trading near the resistance line of a broadening pattern in 30 minutes chart
  • Price may get resisted here But the black dotted line may give support in case of a correction.
  • Large correction will be possible only if the dotted line gets broken.
  • If the up move is to continue from this level price needs to breakout above this pattern. 
  • One more thing to note is the presence of an unfilled GAP in the chart


  • SPY Four hour chart with cloud breakout and resistance levels.
  • Last time we had a major breakout in this time frame was at 113.18 level. Before the resistance level broke out price gave a breakout above the cloud.
  • We are seeing a similar breakout above the cloud. What is pending is a breakout above the resistance level which is at 122.92.
  • This rally will gain further momentum if price breakout above 122.92. Getting resisted at 122.92 will be negative.

S&P 500 Futures Fibonacci levels

  • ES Fibonacci levels in 30 minutes chart.
  • Fall from 1211 was stopped near 1202 which is near 23.6% Fib level
  • Important numbers for ES today are 1202 which is the support 1207 and 1211 will be the resistance  for ES to cross to move ahead.
  • 23.6% and 38.2% Fib levels may act as support in case a correction happens.

Dark Cloud Cover of NFLX

  • NFLX was Down yesterday followed by a dark cloud cover pattern in the stock.
  • The dark cloud cover is a bearish reversal pattern with high reliability. But one look at the chart shows 3 prominent occurrence of the same pattern which was followed by a correction.
  • The Dark cloud covers patterns of NFLX has given good correction but the stock is still in a structural bull market. Trend line drawn in daily chart is yet to be violated.
  • So yesterday's bearish pattern may give a correction but the long term view of the stock is still bullish.

S&P 500 Futures support levels

  • ES gave a breakout at 1184 levels and went till 1211.
  • 30 minutes chart is showing a bull flag breakout at 1207 level.
  • Staying above 1207 will be positive for the index.
  • Price moving below 1207 will be negative in the short term.

Nifty Futures intraday update

  • Day high is violated.
  • If sustains above 6027 nifty will target its 50 DMA or the next Fib level which is 61.8%.
  • Price moving below 6027 will be negative.
  • Nifty intraday chart is showing a range of 5986 to 6027
  • An ideal trade would be to breakout on the upside to go along with the primary trend.
  • Break of 5986 may get support near 5975 area. 5975 area acted as resistance which may act as support now. Break of 5975 area on closing basis will favor bears.

Nifty Daily Analysis

  • Nifty went above 23.6% and 38.2% fib levels with ease. Price is showing good upward momentum. 
  • We may get a gap up opening which may take nifty closer to 50% level. So if Nifty crosses 6014 levels then 6000 to 6020 level should act as good support or base for the next up move.
  • Second chart shows good support near 100 DMA. This up move if end at 50 DMA will be a classic retest of an important DMA which may be followed by big correction. If 50 DMA is taken out we may see 6200 in December.

S&P 500 Analysis after closing bell

  • S&P 500 Gave a breakout and closed the day above 1200
  • Index was trading in a range of 1172 - 1200 for a while now. With price closing above the psychological mark of 1200 chances of resuming the up trend has increased.
  • Price should stay above 1200 in the following days.
  • Price has broken above 20 DMA which was acting as resistance. Price tested 50 DMA which has acted as good support for the index.