Day Trading & Forex Forum

indrajit_16

Trade Triangle Analysis confirms that a short term counter trend move is underway. When this action is over, look for the longer term positive trend to resume. The uptrend with money management stops. Based on a pre-defined weighted trend formula for chart analysis, (Dow Jones) DJIA scored +85 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

↑ +10 Last Hour Close Above 5 hour Moving Average
↓ -15 New 3 Day Low on last Friday
↑ +20 Last Price Above 20 Day Moving Average
↑ +25 New 3 Week High, Week Ending May 9th
↑ +30 New 3 Month High in May
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↑ +85 Total score for Dow (Up-trend).

Regards

Indrajit
StockManiacs - Analysis On Indian And US Stock Markets And Free Real Time Nifty Chart

indrajit_16

Refer to my Friday's post on Dow Jones, where I have told about Dow resting on strong weekly support. Dow respected the support on Monday and bounced back 245 points on Monday and closed finally at 8504. Now where is it heading to now? We know a picture is equal to 1000 words. So let us analyse it pictorically.



Dow already retraced more than 61.8% of the 6th January 2009 high and 9th March 2009 low. Dow is respecting its major supports and now it looks like Dow is all set to head towards the 100% retracement level at 9175. Before that, it may face strong resistance at 200 DMA level now hovering around 8906.Supports for Dow exists at 8240 level and immediate resistance exists between 8615-8625 level. Long positions can trail the longs with closing stop loss below 8240. DJIA now needs to conquer the immediate resistance level to head upwards. Watch out for the levels closely for the move . Cheers!!

Regards

Indrajit
StockManiacs - Analysis On Indian And US Stock Markets And Free Real Time Nifty Chart

indrajit_16

The U.S. stock indexes closed mixed on Tuesday after solid gains posted on Monday. Dow closed at 8475 down marginally by 29 points Bulls still have some fresh upside near-term technical momentum. Bears are anticipating the "sell in May and go away" phenomenon that has occurred in the past. However, the recent rally in stocks has surprised most with its resilience. Too many analysts expecting a downturn has actually prolonged the rally.

Dow Pivot Levels For Wednesday 20th May:

R3 - 8595
R2 - 8567
R1 - 8521
Pivot - 8492
S1 - 8446
S2 - 8418
S3 - 8372

Dow technicals quickly: 5 DMA support now exists at 8420. Immediate trendline support comes at 8237 and trendline resistance comes at 8608. Daily RSI-2 is at 68 in sell mode but still in strong bullish zone. So far Dow is in consolidating mood after the big gain on Monday.

Regards

Indrajit
StockManiacs - Analysis On Indian And US Stock Markets And Free Real Time Nifty Chart

indrajit_16

The U.S. stock indices closed weaker on Wednesday. First higher and then finishing at their lowest levels of the day, Dow underperformed other US indices, closed down 0.6%. Turning, the corner at the mid-way of the week, the results shows that Dow is up 1.9% at week-on week basis. An old saying says 'Sell in May and go away'. Does that still hold true in these unusual times? This is now the big .


Dow Pivot Levels For Thursday 21st May:
R3 - 8727.50
R2 - 8659.70
R1 - 8541.10
Pivot - 8473.30
S1 - 8354.70
S2 - 8286.90
S3 - 8168.30

Dow Quick Technicals: 5 DMA support now exists at 8421. Dow is now resting on exactly the 5 DMA and the move in either side of this crucial level will set the mood for Thursday. Immediate trendline support comes at 8245 and trendline resistance comes at 8602. Daily RSI-2 is at 43.45 in sell mode but currently in neutral zone. Overall, any prolonged trading activity now below 5 DMA can signal immediate retest of the trendline support at 8245.

Regards

Indrajit
StockManiacs - Analysis On Indian And US Stock Markets And Free Real Time Nifty Chart

indrajit_16

The U.S. stock indexes closed solidly lower today. Dow closed at 8292 down by 130 points. The indexes were pressured by a bearish weekly jobless claims report and by news that the U.K's credit rating has been lowered. Bulls has not yet become too confident in these still-very-troubled economic times.

Dow Pivot Levels For Friday 22nd May:

• R3 - 8593.70
• R2 - 8504.90
• R1 - 8398.50
• Pivot - 8309.70
• S1 - 8203.30
• S2 - 8114.50
• S3 - 8008.10

Dow Quick Technicals: 5 DMA support broken, so 5 DMA will now act as resistance intraday, and the 5 DMA resistance now exists at 8378. Immediate trendline support comes at 8252 and trendline resistance comes at 8596. Daily RSI-2 is at 15.62 in sell mode and in strong bearish zone. Overall, don't look for keen buying interest on Friday, ahead of a long holiday weekend in the U.S.

Regards

Indrajit
StockManiacs - Analysis On Indian And US Stock Markets And Free Real Time Nifty Chart

indrajit_16

Dow as per Twigg's Money Flow Analysis:
Dow is consolidating between 8200 and 8600. Wednesday and Thursday's large volume and weak close along with Friday's consolidation indicates strong resistance at the upper border. Bearish divergence on Twiggs Money Flow (21-Day) signals selling pressure.



Breakout below 8200 would end the bear rally of recent months — and warn of a down-swing to test primary support at 6500. Reversal above 8600 is unlikely, and would test primary resistance at 9000.

Regards

Indrajit
StockManiacs - Analysis On Indian And US Stock Markets And Free Real Time Nifty Chart

indrajit_16

The Dow closed higher at 8473 on Tuesday and above the 5 DMA, crossing it at 8387. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. Closes below the reaction low crossing at 8230 would open the door for a larger-degree decline into early June. If the Dow renews this spring's rally, January's high crossing at 9088 is the next upside target. First resistance is last Wednesday's high crossing at 8591. Second resistance is January's high crossing at 9088. First support is the reaction low crossing at 8230. Second support is the 25% retracement level of the March-May rally crossing at 8066.

Dow Pivot Levels For Wednesday 27th May:

R3 - 8839.31
R2 - 8667.51
R1 - 8570.50
Pivot - 8398.70
S1 - 8301.69
S2 - 8129.89
S3 - 8032.88

Dow Quick Technicals: 5 DMA support now exists at 8387. Immediate trendline support comes at 8223 and trendline resistance comes at 8580. Daily RSI-2 is at 80.26 in buy mode and in strong bullish zone. Overall, any break and close above or below the trendline support or resistance can set the future momentum .

Regards,

Indrajit
StockManiacs - Analysis On Indian And US Stock Markets And Free Real Time Nifty Chart

indrajit_16

The Dow Jones fell of a cliff today which had to do with bond sales. 8200 is the level to watch on the Dow because this is the closing support level which has held since breaking up through it in late April. A close below 8200 (near its 34 DMA) would spark some technical and panic selling and the 50 day moving average and 8000 would be tested. On the upside... resistance has been in the 8575 - 8600 and any close above 8600 would be bullish. Till now Dow Jones is moving absolutely sideways looking for either a breakout or breakdown.

Dow Pivot Levels For Thursday 28th May:
R3 - 8641.86
R2 - 8569.23
R1 - 8434.62
Pivot - 8361.99
S1 - 8227.38
S2 - 8154.75
S3 - 8020.14

Dow Quick Technicals: 5 DMA support again broken and 5 DMA resistance now exists at 8358. 34 DMA support now exists at 8206 level confirming it a strong support zone. Immediate daily trendline support comes at 8225 and trendline resistance comes at 8574. Daily RSI-2 is at 33.95 in sell mode and entered strong bearish zone. Overall, daily and weekly trend is flat but interesting monthly trend is showing mild unconfirmed uptrend.

Regards,

Indrajit
StockManiacs - Analysis On Indian And US Stock Markets And Free Real Time Nifty Chart