May 8, 2012

SPY Support levels

  • SPY has broken the 135.76 level which was the crucial support.
  • Price closing below this level should take price towards the 200 Period SMA of four hour chart or the support below it which is 134.36.


  • Caterpillar has fallen below the crucial support zone of 97 - 98.
  • Price has also fallen below 200 Day SMA. For bears need a daily close below 200 SMA to gain more strength.
  • Hour chart too is trending below the cloud. Hour trading above the cloud may give an oversold bounce which looks unlikely at the moment.

GOOGLE Bullish Engulfing and Head N Shoulders

  • Google daily chart shows both bullish and bearish patterns.
  • A bullish engulfing at 200 Day SMA is a perfect combination for bulls. Bulls just need price to trade above 20 and 50 Day SMA for a trending up move to happen.
  • For bears price should remain below 20 Day SMA and need a break below 200 SMA for the head  and shoulders pattern to be effective.

USDINR Trend update

  • USDINR is getting support near 20 Day SMA. Only a daily close below 20 SMA shall start a correction.
  • Four hour time frame is trending up above the cloud. The trend of this time frame will change if the pair start to trade below the cloud.

SILVER Near weekly trend line

  • Silver week is testing its Golden ratio. Sustaining below this level can give an extended correction for silver.
  • Around 28.50 There is a trend line support as shown in first chart if this one is held then an up move towards the resistance line is possible. If that trend line does not hold price may slip towards 25 - 26 levels as shown in the last chart.

NIFTY Resistance levels

  • For a bigger breakout the declining channel shown in the last chart has to give a breakout on closing basis.
  • First chart shows the Fibonacci level of 23.6% and 38.2% levels as resistance. The area between these two levels will act as resistance.
  • Broken 200 SMA should be crossed first for continuing yesterday's turnaround attempt.

ES Resistance levels

  • ES is testing the hourly resistance levels.
  • For the up move to continue price need to trade above 50 Hour SMA and the cloud.