Friday, March 4, 2011

Interesting Charts

Check out the following interesting charts that may indicate the Trend to unfold.

1. Short & Long Kiss :

The Short term moving averages indicator of 5-20 ema have just crossed bullishly. Whereas the Long term averages of 50-200 dma have just locked in .Will this be a killer kiss, the 'Death Cross' or will it the a Bullish 'Touch and Go' ?? Lets watch keenly for the prices to whipsaw at 200dma and then give a firm direction.

Whatever happens at 50-200dma , we are in for the'Ride of this Year' on one side after this resolves. Tighten ur seatbelts.

2. Rounding Bottom : 

The VIX Chart is supposedly making a 'Rounding Bottom' Pattern.The Bullish VIX will be the cause of a volatile ,Bearish Market. For now the VIX is below the short term Trendline . Keep an eye on it.

3. Trendline :

Prices are trying to breakthrough this Medium term Trendline for the third time.Last two attempts have failed ,will this attempt be successful?


Debdeep said...

Simply Awesome.....gr8 analysis. Keep up your good work.

mynac said...

Shall it be again touch & fall this time too?Because this time too the short term technicals are yet not favoring Bulls.
But if Bulls will push Nifty beyond 200 DMA + 300 Points,then only one can think over the new top,the new targets etc.
Generally it is seen that whenever Bulls have pushed or succeed in pushing Nifty beyond above said criteria,Nifty has meet upward targets easily.
AT present 50 & 200 DMA is 5655 so 5655 + 300=5955 is the minimum requirement.
Why these 300 points? because Bulls keep or need "these points" as a cushion.
Following are the examples for the same:
On 28/04/2009 NF Close 3354.95,& 200 DMA 3376.8 After 5 days trading NF top 3717.40
On 09/06/2010 NF Close 4990.40 & 200 DMA 5021.45 After 5 Days trading 5297.
In both cases after running corrections up to 4% Bulls saved that time 200 DMA.
So my simple understanding at present is based on this very common observation.

AAR VEE said...

Thanks and kep coming back with ur observations and comment.

Very fine observation about 300 point cushion.My EW understanding saying same too(down),but i will have flexibility above 5700(if trades)and lighten my positions,will watch very carefully the profiles and price level and then decide to take a plunge.I suppose will get resolved finally in April series,if trades above 5700 sometime in March.
They will make people to buy on dips for the C wave to unfold.