July 20, 2011

US Dollar Near Support line

  • US Dollar near the support line of the Ascending triangle pattern.
  • If price holds the line we may see an up move in US Dollar.
  • Breaking the support line will be negative for USD
  • Bigger up move will be possible on crossing 200 DMA.

SILVER Head and shoulders

  • Silver hour may form a head and shoulders pattern if price gets support near 37.80 - 37.90  level.
  • Price is sustaining below 50 Hour moving average which will favor a bearish trade.
  • Price breaking 37.80 level will make the HNS invalid and lead to a deeper cut in silver
  • SILVER - Negative Divergence

ES Negative Divergence

  • ES has given a correction followed by negative divergence.
  • Now price has taken support @ 1320 level. Price has to stay below this level for bears to extend this fall.
  • ES 30 Minutes chart with Trend line and negative divergence.
  • Price will move higher if the trend line is not violated.
  • MACD and price showing negative divergence But price has to confirm for a correction to happen
  • May be if the trend line is broken negative divergence may play out.
  • SILVER - Negative Divergence


  • Nifty has formed a bearish engulfing pattern.
  • Engulfing patterns need confirmation
  • But good thing for bears is that it has come near the resistance line.
  • Still price has to open lower and a Good volume black candle can confirm the pattern.

NIFTY Intraday Update

  • Head and shoulders have given good correction in favor of bears.
  • Now correction may continue only if nifty break below 5550 level

  • Nothing much has changed from the start of the series.
  • We are still hovering around the 5600 level.
  • Bears and Bulls are not being allowed to pull away from this level.
  • Below 5600 - 5604 its the bearish zone. above 5604 Bulls have a chance to breakout.
  • Bigger breakouts are either below 5496 or above 5740.

RELIANCE chart analysis

  • Triangle of reliance is broken
  • Price is getting resisted at the trend line shown below.
  • For bulls price has to break and close the day above this line
  • For bears if price stays like this it will be easy for them to push it down to the support line
  • Reliance is trading close to its support and resistance lines in daily chart and should break one way or the other.
  • Price has given a bullish engulfing pattern in daily time frame. But We need confirmation in the form of follow up buying for confirming the bullishness.
  • Price is getting support from 20 Day Moving Average. But crossing 50 DMA will be a hard thing to do.
  • 20 DMA @ 865
  • 50 DMA @ 900 Note: Yesterday's Values

Cloud of APPLE

  • AAPL Hour chart moving up in a channel.
  • Trend looks strong in hour time frame.
  • Price yet to touch the cloud span in hour time frame.
  • One can hold on to long position as long as price does not close below the cloud span.