March 30, 2011

ES Breaks the resistance line

  • Four hour chart of ES shows price breaking a resistance line.
  • One hour chart shows support at 1313 level.
  • Breakout will be valid if price does not go below 1317 and 1313 level.

Nifty Futures Intraday update

  • The channel and Cloud chart shows strength of this uptrend. Bears are being stretched to the limit.
  • Last chart shows divergence with MACD, I showed this one yesterday too and it is still diverging but without any reaction from price a short trade may not get triggered.
  • Unless key Moving averages are not broken this trend will continue like this.

Nifty Daily Analysis

  • Nifty week is showing resistance at 5751 on closing basis.
  • If price clears this level on closing basis then nifty will move towards 5857 level.
  • Price has stayed above 200 DMA which will favor bulls. For bulls price should sustain above this level. Things will get weaker for bulls if price starts to trade below 200 DMA.
  • Death cross has not given anything for bears till now. This one is going similar to the death cross in U.S markets recently which resulted in a bull market.

S&P 500 Analysis after closing bell

  • SPX Hour chart has closed above 20 hour moving average and 20 hour moving average is above 50 hour moving average. Closing is near the high of the day which may favor bulls.
  • Daily chart is showing a bullish engulfing pattern which is bullish in nature. But bulls has to go through a cluster of resistance as shown in the left side of the chart. Resistance cluster is from 1302 - 1333 area.
  • Price is also keeping its head above 50 day moving average which is important for bulls.