December 16, 2011

SPY Filling the GAP

  • SPY has partially filled the GAP between 120.80 to 123.22
  • So an up move might happen only after filling this GAP fully.
  • GAP will be filled near Golden ratio(61.8%) So chances of  a bounce from near this level is high.

SINA Chart Analysis

  • SINA Month chart shows possible support between 47 - 49.50. Price closing below 47 will extend this correction.
  • 2nd chart shows price falling into the Multi-year  Trading range from were SINA gave a breakout.
  • If 47 levels does not hold on closing basis Price may move towards the lower end of the range shown in 2nd chart. 59 Now becomes a resistance level.

APPLE Chart Analysis

  • Apple's Indicators in daily chart is hinting of the current correction getting extended possibly towards 200 SMA or towards the weekly trend line.
  • For Bulls price has to close above 20 Day SMA. Price sustaining below 20 SMA on closing basis will extend this correction towards 200 Day SMA.

ES Resistance line and Trend update

  • Price is near a resistance line in four hour time frame. This line has acted as stiff resistance so far.
  • Moving averages are showing a bearish setup. Price continue to sell off from 20 Period SMA.
  • If price manage to stay above the resistance line we may see an up move towards 50 SMA.
  • Bearish candles near the resistance line will lead to another fall.

NIFTY Hour Trend update

  • Nifty got resisted at 50 Hour SMA. It continue to break all support levels. Sustaining below 4639 will lead to deeper cut. 
  • Nifty hour stuck between 20 Hour and 50 Hour SMA.
  • Once this range gets resolved price may move to the next resistance levels like 4840.
  • Closing below 20 Hour SMA will keep bears interested.

Nifty intraday Update

  • Positive divergence discussed yesterday has given a bounce.
  • Now price has to sustain above 4840 - 4866 level which has acted as support resistance in the recent past.
  • Sustaining above the 4840 - 4866 level may extend this up move.
  • Failure to move above 4840 level will be negative for bulls.

RELIANCE chart analysis

  • Reliance daily chart is showing positive divergence, Price is getting support near 720 levels. But upward momentum may not come until price close above 5 Day High EMA.
  • Price is also testing 5 Week Low EMA. Weekly close above 5 Week EMA will give strength for bulls of reliance. If an up move happens 20 SMA will act as resistance.