December 30, 2011

CISCO Triangle pattern

  • CISCO is showing a contracting triangle pattern in its four hour chart as shown in 2nd chart.
  • Weekly chart shows price unable to sustain above crucial Fibonacci level.
  • Considering the weekly resistance level a breakdown from the triangle pattern may take the stock back to its 200 SMA before the next up move.
  • For bulls price need to close the week above 38.2% Fib level.

ES Support and Resistance levels

CRUDE OIL Hour chart Analysis

  • Crude Oil hourly chart with 50 Hour SMA and Ichimoku cloud.
  • Hourly cloud is acting as resistance. 
  • Violating of the levels shown in 2nd chart may give good moves in crude oil.
  • MCX Crude Oil chart below this post

  • Important support band for bulls to hold on closing basis is 5259 - 5290 level.

GOLD - Possibility of a death cross

  • Gold daily is getting closer to a death cross with 50 SMA coming closer to 200 SMA
  • Price closing below weekly chart will extend this correction in gold.
  • If the current week's low is violated again price may move towards 38.2% Fib level shown in the last chart.

TCS Chart Analysis

  • TCS Weekly chart near important resistance levels.
  • Daily chart is moving up above 50 Day SMA and daily trend line.
  • Daily indicators are overbought and the correction if happens may be limited to the 50 Day SMA or the daily trend line. Bigger correction may happen once the moving average and trend line gets broken.
  • Hour chart is showing bullish Ascending triangle pattern. Bigger up moves will be possible only if stock crosses the big resistance level shown in weekly chart on closing basis.
  • Breaking 1159 will favor a short trade in TCS. Long trades is not showing good risk reward ratio unless the stock decides to breakout above the strong resistance level of weekly chart.

Triangle of Tata Motors

  • Its a contracting triangle pattern in daily chart for Tata motors
  • One should also note the presence of 200 SMA near the pattern. The fact that price is staying below 200 SMA should favor bears.
  • For bulls an upper breakout and a breakout above 200 SMA should happen. For bears breaking below the support line of the triangle should target 167, 160 and lower. For upper breakout one should watch 200 SMA, Price closing above it can give good up moves for Tata Motors.