- Nifty week is showing resistance at 5751 on closing basis.
- If price clears this level on closing basis then nifty will move towards 5857 level.
- Price has stayed above 200 DMA which will favor bulls. For bulls price should sustain above this level. Things will get weaker for bulls if price starts to trade below 200 DMA.
- Death cross has not given anything for bears till now. This one is going similar to the death cross in U.S markets recently which resulted in a bull market.
- S&P 500 ANALYSIS AFTER CLOSING BELL
- SPX Hour chart has closed above 20 hour moving average and 20 hour moving average is above 50 hour moving average. Closing is near the high of the day which may favor bulls.
- Daily chart is showing a bullish engulfing pattern which is bullish in nature. But bulls has to go through a cluster of resistance as shown in the left side of the chart. Resistance cluster is from 1302 - 1333 area.
- Price is also keeping its head above 50 day moving average which is important for bulls.
- ES BROADENING PATTERNS
- ES Hour chart with broadening patterns.
- First one gave an upside breakout.
- The current pattern will favor bulls if price starts to trade above 1317.50 level.
- The resistance line may not get cleared at one go. As in the first pattern look for a hit on the upper resistance line followed by a partial decline for going long.
- Price in hour chart has gone below 50 hour moving average.
- Slipping below 1302 may give a short entry.
- Breaking above 1308 and 50 hour moving average will favor bulls.
- 1296 and 200 hour moving average are the important support levels.
- DOW JONES DAILY CHART ANALYSIS
- MACD and price is showing negative divergence in 15 minutes chart.
- But price has to confirm by giving a correction which has not happened yet.
- If price continue to create higher high's Negative divergence will not be valid.
- Nifty is overbought and at resistance level. But if price manage to close above 200 DMA the indicators has to stay overbought for some more time while nifty moves towards 5900.
- If the channel resistance around 5700 comes into play bears have a hope. But if that is to happen we will see one or two negative daily candles this week.
- So the best approach for those who does not have a position would be to watch the 200 DMA drama unfold and enter when the direction becomes clear.
- DOW JONES RESISTANCE LEVEL
- SPY Hour is consolidating above 200 hour moving average and the trend line.
- If price continue to stay above the MA and the trend line an upside breakout will happen.
- Price falling below 200 hour moving average and the trend line in hour chart may turn the short term trend in favor of bears.
