June 28, 2012

SPY Descending triangle

  • SPY Hour shows a possible descending triangle pattern.
  • Breakdown below 130.85 levels could close the GAP in hour chart and possibly test the recent lows.
  • For bulls price need to stay above the resistance line and trade above 50 Hour SMA to avoid a breakdown.

JP Morgan Chase Resistance levels

  • JPM Near 50 Day SMA, Daily Ichimoku cloud and 38.2% Fibonacci levels.
  • Confluence of resistance may stop the advance of bulls for now.
  • Close above these levels could target the GAP area. Negative close today may take the stock back to 23.6% fib level and below it.

ES Chart analysis

  • Crucial chart for shorter time frame traders is the second one, price is stuck between the 200 Hour SMA and the Ichimoku cloud. Breakout could give a meaningful move in ES 
  • A bigger move might not happen until the contraction shown in daily chart gets resolved.
  • 4 Hour cloud shown yesterday is acting as strong resistance.

NIFTY Channel and Range

  • Nifty continues to move in a channel.
  • Hour chart also shows support near 5090 and 100 Hour SMA. There was spike below 100 Hour SMA but it was not broken on closing basis. So for bears hour closing below 100 Hour SMA Will be the first warning and close below 5090 will turn things in favor of bears.
  • For bulls they have to break through the 5180 - 5200 zone which looks unbreakable. Bulls has to break it on closing basis to confirm a breakout.

S&P 500 Analysis after closing bell

  • First chart shows price moving in a narrow band which is inside a larger price range.
  • Second chart shows price contraction which may result in a big move.
  • Daily chart shows price near the Ichimoku cloud which may act as resistance. Last fall too started near the daily cloud.

CATERPILLAR at weekly trend line

  • CAT is about to test the weekly up trend line.
  • Daily chart has a death cross which is doing well so far. 
  • Price continues to trade in a descending channel. Some hourly charts are showing positive divergence. If the bounce happens it should trade above 86.88 levels for a stronger up move to happen.