June 30, 2011
- Wedge break on the upside.
- Stay long till weakness is seen.
- ES 30 Minutes chart with rising wedge pattern.
- Bearishness will be confirmed if price stays below 50 period moving average shown in the second chart.
- Price sustaining above 50 Period moving average will continue to favor bulls.
- First chart shows the stochastic and trend line combination for going short.
- It seems we will get one more short trade from this down trend line shortly.
- This short trade may not get triggered if nifty decides to give a bigger breakout. But when price hits the trend line with an already overbought stochastic the risk reward ration will favor a short trade. So have a small stop loss for this upcoming short sell.
- Second chart shows a positive candlestick near 5604 Past four attempts when nifty got rejected here price showed negative candles. This time it looks different and price momentum the way it came back from 5195 to this level in a short span of time shows the strength of bulls. So they may have enough of momentum to go above 5604 this time.
- TREND LINE OF DOW JONES