Stock Market Chart Analysis

October 8, 2010

Dow Jones Futures daily chart with resistance levels.
Index is struggling to cross 10915 levels.
For the last two days price tried to stay above this level. But was not able to do it.
Now 11000 levels can be achieved only if price crosses 10915 with big volumes.
S&P 500 ANALYSIS AFTER CLOSING BELL

CLICK TO ENLARGE THE CHART

Broadening pattern of S&P 500
Today the index made a low of 1146. Took support at 1146.
If that level holds that may be the low for this week. And the index may be heading towards the top end of the pattern

Nifty futures is showing a large range of 5960 - 6246
6093 will be the midpoint.
If 6093 breaks one should keep in mind the Fibonacci levels mentioned in the previous post..
An up move is possible from 6093 levels.

Nifty futures is trading at 38.2% retrace level.
It has taken support at 38.2% level today. If this level breaks it will be negative and one can expect to see price near 50% level.
But if the support is strong at 38.2% we can expect a rally towards 23.6% and above.

BULLISH VIEW

BEARISH VIEW

Reliance Industries is forming a likely CUP AND HANDLE pattern. with breakout area around 1048 - 1053. Stock should trade above this area.
But if one see the second chart the stock is getting resisted below this trend line. So any breakout is possible only if the stock trades above this line.

Nifty is trading close to its 5 day low ema this was were nifty got support last time. Nifty may get support from this ema again. One has to watch carefully though as a break and trade below this ema may also be negative for the short term.
From the second chart one should understand that if nity is to make another all time high it will break 6222. It may be safe to go long above this level with a small stop loss.
CUP AND HANDLE OF RELIANCE INDUSTRIES

S&P 500 Index continues to close above its breakout point of 1150.
The second chart is the line chart with two dips below 10 DMA. Even though it closed below the DMA next day it was bought by the bulls. So a dip below 10 DMA or up to 1148 - 1150 can be used it as a buy on dip opportunity.