April 22, 2011

CISCO - Three reasons for a long trade

  • First chart is the Weekly time frame with Fibonacci levels for the rise from $13.61 TO $27.74. 
  • Price is trading at 78.6% for the above mentioned range. Week candle has given a DOJI at 78.6% Fib level.
  • Next chart shows a previous resistance turning as support scenario. Current week closing has acted as resistance previously and price is closer to the channel support line. So this confluence of support may give a bounce.
  • Third chart shows MACD positive divergence which can help the stock to bounce.
  • And if all the reasons fail stock may start to go down again so one should put a tight stop loss below 16.59 level.

INTEL Chart analysis

  • In weekly chart price is moving towards the resistance line which is between 22 and 23.
  • Stochastic indicator has just turned up from oversold level, If resistance line gets broken we can see further upsides for the stock.
  • Daily time frame shows a gap in chart which is negative for the bulls. But price is above 50 and 200 day moving averages Sustaining above this important for the bulls.


  • Bank nifty with a possible inverted head and shoulders pattern.
  • Breakout above 11950 level can give good trade.
  • Range in daily chart too is not yet broken 
  • Range is from 11480 to 11950 level.

ES Important levles

  • ES is showing a range from 1322.75 - 1337.50. 
  • 1329.50 is the support resistance zone inside the range.
  • Price breaking the lower or upper boundary can give good direction.