Stock Market Chart Analysis: 05/18/12

May 18, 2012

IBM Testing the trend line in daily chart.
Crucial support between 194 - 196. Daily close below this level may result in a bigger fall.

Apple bouncing from 100 Day SMA and weekly chart from 20 Week SMA.
But the hour chart is not yet showing a complete turnaround in favor of bulls. If price continue to sustain below 50 Hour SMA and the cloud selling might resume. So bulls shall try to breakout and sustain above the hourly cloud for a bigger up move to unfold.

IWM weekly chart is testing 50 Week SMA. If week candle manage to come back and close above this level then a pause in selling is likely. Closing below 50 Week SMA will extend correction for the coming weeks.
Price is testing 38.2% Fib level. Daily close above it may give a pull back. Price closing below it will extend the fall
Weekly MACD sell signal has worked well so far. The cloud support in weekly chart has to be broken for a bigger down move to happen.
S&P 500 ANALYSIS AFTER CLOSE

Silver one hour chart shows a bearish rising wedge pattern. Price is also near 200 Hour SMA. If a breakout above 200 Hour SMA happens this up move will extend. Breakdown below the support line of the rising wedge will favor a bearish trade in silver to test the recent lows.
Targets for the up move is shown in fibonacci levels of four hour time frame.
The four hour cloud too may act as resistance for silver.
GOLD BOUNCE FROM WEEKLY SUPPORT LEVEL

Hour charts have moved above 200 Hour SMA which is good for gold bulls.
Second chart shows price with fibonacci resistance levels for the fall from 1671 to 1526 levels.
Last chart is the most crucial one. Gold week looks like it will give another weekly candle with long shadow from the support zone of 1522 - 1532. If weekly candle closes like this or higher it should favor bulls of gold for the coming week for a rally towards the falling resistance line shown in the last chart.
S&P 500 ANALYSIS AFTER CLOSE

CHART-II

CHART-I

First chart shows the Ichimoku cloud of 30 Minutes acting as stiff resistance.
Second chart is a lesson for moving average users especially in a trending market. Plot two major moving average in this case i have used 50 and 100 period SMA. When the trend is strong the first moving average acts as resistance. Then the area between the first and second moving average too acts as selling zone.
Trend usually changes or reverses when price moves above the second moving average in this case the 100 period SMA.

Monthly trend line and 78.6% may act as support level for today's fall.
If they both fail to stop the down move and a daily close happens then Nifty may fall to the levels mentioned in the second chart.
GOLD HOUR CHART ANALYSIS

Weekly chart shows good gains on falling below 20 Week SMA for bears. Now price is nearing 50 Week SMA which is expected to give a bounce initially before the next fall.
Daily chart too is nearing crucial support levels in 200 SMA and 38.2% Fibonacci level.
One hour chart continues to trend down below 50 Hour SMA and cloud. Any bounce to be effective should trade above these two levels.

ES Nearing 200 Day SMA and 38.2% Fibonacci level.
These two levels may act as a support zone. Having said that if price sustains below 200 SMA it should help bears to extend the fall.