June 1, 2011

ES Hour chart analysis

  • ES is nearing the Golden ratio for the current rise from 1302 level.
  • Price has broken below 200 Hour moving average.
  • Price sustaining below 200 Hour moving average will favor bears.
  • If an intraday bounce is to happen it might happen from 61.8% retrace level

ES Near Important SAR Level

  • ES Daily line chart shows price near 1341 - 1342 level which is an important Support and Resistance level. If bulls manage to move above and close higher from this level they can extend gains up to 1375 level.
  • If bears manage to pull down and close below this level price may start to correct again.
  • Price in hour chart is moving up in a channel. For bears they should try to break the channel, Price staying in the channel will favor bulls and small corrections within the channel can be used for achieving newer high's.

NIFTY Intraday Update

  • Nifty has managed to get into the Bear flag pattern.
  • Now that the resistance line is crossed price may target the upper trend line.

Nifty Closes above 20 DMA

  • Nifty Closes above 20 DMA and if sustains above this level will soon reach the 50 day moving average.
  • MACD and Stochastic are still favoring bulls. Indicators are yet to become weak.
  • The hammer seems to be working well for bulls so far. Price closing towards the high of the week will increase the validity of the Weekly bullish hammer