June 7, 2011

ES Triangle pattern

  • Price not sustaining above 50 Hour moving average.
  • Triangle is favoring bears.
  • ES Hour in a triangle pattern
  • One can also spot a potential Inverted head and shoulders pattern.
  • Break below the support line will favor bears.
  • Break of the resistance line will be both a triangle as well as an IHNS breakout which will favor bulls 

APPLE Bearish engulfing in week and day

  • Apple Daily is falling after the bearish engulfing
  • Weekly chart is also developing a bearish engulfing pattern.
  • Last week candle was a bearish shooting star candle.
  • Price will be under pressure as long as it stays below 20 day moving average.
  • Bigger falls may be seen if week closes below 325 - 327 level.

ES chart with a possible reversal setup

  • First chart is four hour time frame with 10 and 21 period moving averages. The candle at the swing low seems to be a powerful reversal candle. If price stays above 10 period moving average we may see trend turning in favor of bulls.
  • For bears price should stay below 1290 which is near the Golden ratio in daily time frame.

NIFTY Intraday Update

  • Now price should sustain above 5542 level for moving towards 5575 - 5580 level.
  • Nifty hour with a bullish consolidation pattern.
  • Bull flag will be strong and favor bulls till 5479 is not breached.
  • Breaking the resistance line and staying above 5442 will favor bulls.
  • For bears breaking the dotted support line inside the pattern will give some profits. But bigger profits only if they manage to break below 5479 level.

Nifty Daily Analysis

  • Nifty took support at 20 DMA. But if this level gets tested repeatedly it may not hold.
  • At the top ichimoku cloud is acting as resistance. Price unable to pierce the cloud at the moment.
  • So it is still in that neutral zone. Lets wait for price to give a clear direction.

S&P 500 Analysis after closing bell

  • SPX Daily has closed below the support level of 1294 
  • This is the 4th consecutive bearish candle for SPX. Hour chart is trending down within a narrow channel.
  • Only relief for the bulls is the mild positive divergence that is developing in 15 Minutes chart which might result in a small bounce. For any larger bounce price should trade above the narrow channel shown in hourly time frame.