May 17, 2011

DOW JONES Previous Resistance may become support

  • Dow Jones Daily chart is testing the previous resistance area.
  • 10425 is a crucial support Closing below this will be negative. Bearishness will increase if price manages to close below 50 day moving average.
  • If price sustains above 50 DMA a turn around is possible for bulls.
  • GOLD Testing the trend line

GOLD Testing the trend line

  • Gold is testing its Trend line in daily chart.
  • Price is also testing its 50 day moving average.
  • Closing below 50 DMA will be negative for gold in the short term.

NIFTY Intraday Update

  • Support line break did gave a short entry. 
  • Those who are short should be careful as we will be approaching weekly supporting trend lines.
  • Bears has to break the support line for moving down.
  • If an up move happens 5535 levels may act as resistance as shown in the chart.

NIFTY Range getting narrow

  • Weekly chart shows price at an important trend line. May give whipsaw before nifty takes the bigger direction.
  • Daily line chart shows price range getting narrow. Price should try to escape from the apex of this pattern.

DOW JONES Analysis after closing bell

  • First chart shows price hitting the support line of the small channel drawn in daily time frame. So it is at a make or break area.
  • Next chart shows price forming a descending triangle pattern in daily chart. Price is above its 50 day moving average.
  • Hour chart looks interesting, Price is converging between 50 Hour and 200 Hour Moving average, So we must get the first clue from the hour time frame to which direction this is going to breakout.