S&P 500 12th November 2012

Weekly Chart

Daily Chart

Rising wedge on the weekly charts, which I have been watching since it developed, was warning of waning momentum and finally a reversal when the support line is broken.It broke the resistance line first leading to a false breakout and a bull trap.Now that it has broken the support line finally we go with the fact that when it is broken a reversal is indicated.So we have a reversal in the S&P500 and we look to sell on rises.

Having taken support at the 200 ema on daily charts a bounce may be in order which should give a good oppurtunity to cut losing longs and go short if you have the expertise to do so.In case we have a rise above the lower top at 1434 it would ring alarm bells of a  not so bearish scene.

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Lakshmi Ramachandran
www.vipreetsafetrading.com

 

Reigning The Nifty 9th November 2012

Half  Hourly Chart

A lower high lower low candle was made for the day. Nifty made a gap down opening breaking below the neckline around 5725. The close however was above it.Till the gap area of 5744-5760 is closed and the recent high of 5777 is taken out expect a side to downward movement.

Till the low made at 5583 is unviolated the uptrend is intact.

 Immediate support 5760-5744-5693.Gap support at 5679 coincides with the 50% fibonacci levels and should prove good support in case the fall continues. Resistance at 5760-5777-5815

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Lakshmi Ramachandran
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Reigning The Bank Nifty 9th November 2012

Half Hourly Chart

Yesterday I said " Half hourly charts show the Bank Nifty resisted at  uptrending channel's  resistance line.Logically it shoul test the support line which has support at 11564-11729.Flag resistance line is   now support at 11577-11570".

Bank Nifty enacted the script after opening gap down and breaking below the flag resistance line.Support was taken around 55%  retracement level and the close was however abovethe flag resistance line keeping bullish hopes intact.Closing below the breakout level of 11657 was a dampner.In the process an 

"Inside Day" pattern was formed.

An Inside Day is a day that has a lower high and higher low than that of the prior day.Simply put, the high and the low of the previous day are not violated. Inference of this is, the market may be catching its breath before another up or down day. It could be indecision between bulls and bears . Or, it may be hesitation by the market players who are wary whether the current trend will continue .

The "Inside day" can become quite powerful when it occurs during a long-lasting trend, and can therefore signal a reversal. Could this be applicable now? We cannot say till confirmation of other signals.First signal would be breakout above or below the high or low of the pattern which is 11719 & 11519 respectively.

The trend is still up and will be in danger only if the recent low of 11125 is breoken decisively.

Immediate resistance at gap area of 11665-11638-11719-11745.Support at 11557-11533

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Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 9th November 2012

Daily Chart 

Extremely bearish signs with the uptrendline from 1074 breaking down.Close for the week below this line would be a break down from the rising wedge which I have been showing for some time.This would turn the trend down.

Meanwhile the pennant target is at 1350.The channel target is at 1332.

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Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Reigning The Nifty 8th November 2012

 

Half Hourly Chart

 

Prediction of Nifty upward breakout was validated as theNifty continued the uptrend. Resistance came  around 5760-5777, the 76.8%  retracement level and closed at the level. A cross of 5815 should see the Nifty targetting 5944-5950 as marked on the Fibonacci chart.

Half hourly charts show support at the uptrending channel at 5724-5748 and breakout area of 5725.

Taking things one step at a time we will think of the bearish possibility once the bearish bias sets in.Now it is bull time.

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follow me on twitter http://twitter.com/#!/lucksr Happy Trading !! Lakshmi Ramachandran www.vipreetsafetrading.com