February 7, 2011

SPY intraday update

  • At last a negative divergence gives a correction. SPY may target today morning's GAP area.
  • SPY 30 minutes chart with MACD indicator.
  • Price and MACD is showing negative divergence.
  • Divergence may not give big correction if price continue to remain above 132.

US DOLLAR Breaks resistance line

  • US Dollar breaks the resistance line shown in four hour time frame.
  • Above line was shown in the WEEKEND UPDATE OF US DOLLAR.

SPY Technical analysis

  • SPY Weekly chart shown with a resistance line in weekly chart.
  • The resistance area is between 131 - 132. 
  • But the bulls are getting good support from 20 and 50 day moving average. Price is trading well above 20 DMA which has a nice upward slope suggesting the strong up trend. Price falling below this would indicate some weakness.
  • Next chart will give some interest for bears as it shows negative divergence between price and force index. This has been diverging for quite sometime now without any major gains for bears. So one can expect a major correction soon. But Price has to confirm before negative divergence can take affect.

Nifty Futures intraday update

  • Break of 5421 lead to 5443. NF Should sustain above this level for its next target 5471. 
  • Getting resisted here and a dip below 5421 will be negative for the bulls

  • Important levels for nifty futures in 5 minutes time frame.
  • Above day high we may see NF gaining intraday upwards momentum. 
  • Getting resisted near day high will push price towards 5357 friday's low.
  • Above 5419 we may see 5443 and 5471 levels.

RCOM breaks major support line

  • RCOM Breaks below the big weekly descending triangle pattern. Target according to the rules is showing a negative value which is not possible.
  • Stock will remain under pressure below 130 levels.

Nifty Daily Analysis

  • The next level to be broken is 5350. The entire up move towards 6338 took place from 5350 levels. So this level may show some fight. But the way bears have been taking out support levels this one too may go down easily because of the lack of buyers.
  • The next chart shows  a possible bigger attack by bears before the consolidation starts taking place. We saw shortly after price breaking above 50 week moving average an election rally taking place. If price can give moves like that at the start of a bull market we should expect the same kind of moves at the start of a bear market too.
  • The above view may take place only if a bearish news come. Any way if we does not hold 5350 or 5300 levels we may see levels below 5000 soon.
  • The only way out for the bulls is to close price above 50 week moving average or the 200 DMA.