- Bank Nifty's Divergence may give a bounce in favor of bulls. I feel it will be a small bounce considering the strong overhead resistance.
- Weekly trend line is also suggesting a possible bounce.
- Last chart shows the bearish cross in weekly chart which suggests that the medium term will be bearish unless the bearish cross fails.
- First chart is the SPY daily with 20 DMA and Resistance line. Price got resisted at this confluence and has started to correct.
- For one to go long price has to above both these levels.
- Weekly chart shows Important support at 133.2 and Stronger support at 20 Week Moving average. Price has not managed to close below this moving average in the recent times.
- Daily close below 133.2 can be used to go short in SPY.
- Consolidation pattern in daily line chart too can give good direction. Look for a close outside the pattern to go long or short.
- Nifty's Bear Flag breakdown seems to be failing. But price hit resistance on the support line of the Flag which may act as resistance. If price manage to close inside the pattern we may see Bullish price action.
- Price also seems to be coming down in a descending channel formation as shown in 2nd chart.. On Friday price attempted to breakout above the channel But price was not able to sustain at higher levels.
- Last chart shows Oversold stochastic reading which may give a bounce. But it may also stay oversold giving more gains for bears.
- Final chart is the weekly time frame which shows a Hammer like candlestick which may favor Bulls. All candlestick patterns need confirmation so bears should not get too worried.
- SPY Triangle pattern in 30 Minutes is near the apex of the pattern may give direction soon.
- Hour chart shows price moving in a channel with negative bias.
- Price is near the resistance line, Unless a breakout happens price is likely to move down towards the support line of the channel.
- Nifty hour is finding resistance at 50 Hour moving average.
- Hour chart with Fibonacci levels too shows 38.2% acting as resistance .
- Bulls has to stay above these levels for moving ahead otherwise we may see some selling emerge.
- Nifty futures hour chart with MACD
- Price may try to hit the upper resistance line if positive divergence works.
- Real gains for bulls only if they manage to stay above the resistance line. Getting resisted at the resistance line will the perfect entry for bears.
- Bears of bank nifty are threatening to break some important supports.
- 10430 in weekly chart on closing basis will favor bulls and then they will be going for 9870 levels.
- Break below that will change the trend in favor of bears and that means the end of this great up trend started from 3500 levels.
- But lets wait and see if they are able to close below 10430 levels first and then take the next action.
- LARSEN & TUBRO CHART
