August 4, 2011

SILVER Chart Analysis

  • Silver is falling off a cliff. Hour chart looks really bad for bulls.
  • Day has fallen below 20 day moving average.
  • Today's candle has engulfed many candles. Closing at the lows of the day will strengthen the bears further.

SPY Support level

  • Weekly support level mentioned in the below chart did not hold for long.
  • Price violated that level and closed the day below it
  • SPY Weekly chart shows support around 121.70 levels
  • This level may hold for sometime.
  • Next leg down will happen only if this level is taken out.

Head and Shoulders of United States Oil

  • When i did this post i never believed this HNS would do this well for bears. And many readers said the same thing. And it ended up a perfect HNS pattern.
    • USO Daily chart is showing a head and shoulders pattern.
    • Knowing the reliability of Head and shoulders these day's one should be careful before shorting.
    • 34.75 - 35.15 are may give support. Price closing below this level will give good gains for bears.

    ES Unable to change the trend

    • First chart shows the reversal attempts of ES getting rejected above 50 Hour moving average.
    • Price is also getting rejected by the cloud.
    • Trend will turn in favor of bulls if price is able to sustain above the cloud.

    NIFTY Intraday Update

    • Nifty has filled a GAP between 5330 - 5348 which was created in June when the up move from 5195 started.
    • Support line of the wedge is broken and price has filled a GAP in chart shown in the above chart.
    • Price continue to remain inside the wedge.
    • Breaking the support line will extend correction. If price gets support here we might see an up move.
    • Nifty spot in a falling wedge like pattern.
    • Breakout above the resistance line can give good up move for bulls.
    • For bears the dotted line and the support line of the wedge should be broken.

    NIFTY Daily Analysis

    • Nifty staying below 5 day low EMA will favor bears.
    • Stochastic is showing oversold readings. But price has not shown any signs of a reversal yet.
    • Candle looks like a spinning top which shows indecision and sometimes leads to reversal of current trend.
    • Price closing below 5400 will strengthen bears.

    S&P 500 Analysis after closing bell

    • Candlestick of the day shows strong buying @ lower levels.
    • But for bears this has taken place at their backyard which is below 200 DMA.
    • So this bullish reversal candle might have strength only for a retrace towards the Broken 200 DMA.
    • Real strength for bulls can be seen only above 200 DMA. So retrace towards 1285 levels is likely to get resisted there.
    • Price is still staying below the cloud and 50 period moving average in 30 Minutes time frame. These levels should be taken out first for continuing this bounce.