June 10, 2011
BELOW CHART WAS POSTED IN APRIL
- Dow Jones it seems has made a top near 78.6% Fib level in month chart. First chart shows current month price action. Second chart was posted in april.
- If price closes and sustains below 12000 It may start to move towards the 61.8% Retrace level which is near 11200. This is a medium term view.
- Short term will be bearish only if price sustains below 12000.
- Medium term view may change only if price moves above 12500 level.
- Now bears should protect 5480 - 5500 level.
- Nifty is still inside the triangle that we say yesterday. But this time it is close to the apex of the pattern I hope it is not another false breakout this time as triangles use to do often.
- Note: A busted pattern can also give a great trade. If price comes back into the triangle we can reverse the trade for greater profits.
- Have strict stop loss. Happy trading.
- Bollinger band shows price contraction. Since price is stuck between the upper band and 20 DMA a close outside these two ranges might give direction. Price closing above the top bollinger band will make it an inverted head and shoulders and Cup and Handle Breakout.
- Small triangle shown in the first chart if gives an upper breakout will give momentum for bulls. But they need to take out 5570 - 5605 and close the day above these levels.
- for going short price should sustain below 5480 - 5500 level, this level is showing good support for now.