BROADENING BOTTOM
FALLING WEDGE
MOVING AVERAGE
- Dow jones has formed multiple patterns in daily chart.
- The broadening bottom pattern is shown in daily chart.
- There is a falling wedge pattern which has given very good returns.
- Then the moving average is not hinting anything. Having captured the 200 day moving average the price did not follow up. It has been a sideways market for the last 4 days as far as the closing prices are concerned.
- SP 500 has formed three dojis in daily chart.
- So this is the third day of indecision.
- The hour chart shows a formation of a triangle. The hour chart has already broken the raising channel.
- And this is the 4th day closing above 200 day moving average. But no significant movement of price away from the 200 day moving average. which might put some more doubts in to the minds of the bulls.
- The 20 day moving average is starting to turn up
- SP 500 is forming a head and shoulders pattern in 2 day chart.
- The right shoulder should be in place when the index trades above 1135-1145.
- The right shoulder in a head and shoulders pattern can be lower than the left shoulder also.
- But any price action 1155-1160 should be taken as pattern invalid. Because There is important resistance at 1150. And if that is broken bulls may aim for 1200.
- Ford motor has formed a triangle in hourly chart.
- Before taking a position based on the hourly triangle take a look at the weekly chart.
- Weekly trend line has broken.
- Weekly MACD has given a sell.
- One thing to notice is 11.30 which is a very strong support.
- Daily close below 11.30 can bring good correction.
- Dow jones is forming a broadening bottom formation in daily chart.
- It is a bullish reversal pattern.
- Dow jones despite the strong up move throughout this week has not able to close above this trend line.
- If we take a look at the chart it has ended on a sideways note for the last two days.
- So a close above this resistance line could give some strength to the bulls.
- S&P 500 has given 2 doji's in a row. But the trend in daily chart is still up.
- The price is above 200d moving average. And when the 50 day moving average goes below 200 day moving average that crossover is known as death cross.
- Death cross it seems has to wait for some more time.
- The daily chart is also showing S&P moving up my making a double bottom. And this pattern should push S&P 500 above 1150.
