CHART-II
- Negative divergence was updated yesterday in the below chart.
- Today it showed its effect. if today's GAP does not fade we will see an Island reversal pattern
CHART-I
- Price is starting to show negative divergence in smaller time frame charts
- But price continue to make new high's which is the problem for bears.
- Price was closer to the cloud yesterday But the hope of a correction vanished with today's GAP
- If Negative divergence plays out today's GAP may get faded partially which will give a negative daily candle.
CHART-II (UPDATED)
- Price fell below 1343 and a correction followed as discussed below.
CHART-I
- ES breakout of a broadening pattern.
- But hour charts are developing negative divergence.
- So price should stay above the Mega Phone for the breakout to sustain.
- Price falling below 1343.50 can give sharp correction.
- S&P 500 NEAR THE CLOUD
- Nifty closes exactly at the trend line for the 3rd time.
- If history is going to be repeated it self we will see bearish days from here.
- If price sustains above the resistance line we move higher towards 5800.
- Nifty line chart shows a breakout above the broadening formation.
- Now this breakout should sustain and follow up buying should take nifty above the Blue dotted resistance line.
- If it fails to cross the resistance line and retraces into the broadening formation it will be trouble for the bulls.
- So Bulls need a close above the resistance line.
- Bears need to push price back into the broadening pattern.
- ASCENDING TRIANGLE OF US DOLLAR
- Bank Nifty got resisted at 200 DMA.
- 2nd chart shows price getting resisted at a trend line. Nifty is also getting resisted at a similar trend line. Any up move will be possible only if Bank Nifty and Nifty stays above this TREND LINE.
- SPX 30 Minutes chart with ichimoku cloud.
- Price is approaching the cloud.
- Price in all likelihood will make another up move after hitting the cloud.
