June 9, 2011
- First chart is ES Hour time frame shown with the descending channel and cloud.
- The fact that Price is yet to touch the cloud in hour time frame shows the strength of this down trend.
- Daily time frame is shown with 200 day moving average. Price is hanging around this Moving average for last two days which will give some hope of a pull back for bulls, Unless the hour shows some turnaround price may continue to slide down.
- Nifty has given hope for bulls from near the support line. But the resistance line looks strong. If they move above resistance line price has to close above 5570 for bulls to gain momentum.
- Getting resisted here and breaking 5480 will favor bears
- Nifty in a triangle shaped consolidation pattern.
- If the support line holds we may see an up move in the later part of the day.
- Break of support line will favor bears.
- First chart shows that while Dow Jones and S&P 500 are making their longest losing streak since 2009 we are not following them at least till now we have not reacted negatively till now.
- May be the trigger for shoring will come if 5480 or 20 day moving average is broken. Price is holding on to 20 day moving average.
- But it is not moving up too. As can be seen from the weekly chart the 20 week moving average is acting as resistance. A weekly close above this level will favor bulls.