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WTI and Brent Crude Oil charts: consolidating near support zones

3 hours ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartThe following comment appeared in the previous post on the daily bar chart pattern of WTI Crude Oil: "The imminent 'death cross' of the 50 day EMA below the 200 day EMA will technically confirm a bear market."The 'death cross' (marked by grey oval) has ended the brief foray of oil's price into bull territory during Apr-May '19. The support zone between 50-52 has provided temporary solace to bulls.Daily technical indicators are looking bearish and oversold. MACD is moving sideways below its signal line in oversold zone. RSI has emerged weakly from its oversold zone. Slow stochastic has dropped back inside its oversold zone. All three EMAs are falling, and oil's price is trading below them in a bear market. Bears are likely to continue with their 'sell on rise' strategy.On longer term weekly chart (not shown), oil's price has closed well below its three weekly EMAs in long-term bear territory. Weekly technical indicators are in b..
                 

S&P 500 and FTSE 100 charts (Jun 14, 2019): bears trying their best to spoil the bull party

yesterday  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following comments appeared in last week's post on the daily bar chart pattern of S&P 500: "The week's rally was accompanied by sliding volumes. A pullback towards the down trend line is a possibility."The index touched an intra-day high of 2911 on Tue. Jun 11, but pulled back towards the (purple) down trend line, forming a 'reversal day' bar (higher high, lower close).A sideways consolidation in a range of 20 points (2875 - 2895) followed. The index closed above its three EMAs in a bull market, and eked out a 0.5% weekly gain.Daily technical indicators are in bullish zones, but not showing any upward momentum. MACD has crossed above its signal line to enter bullish zone. RSI is moving sideways above its 50% level. Slow stochastic is moving sideways inside its overbought zone. Some more consolidation is possible before the index attempts to scale a new high.On longer term weekly chart (not shown), the index ..
                 

Sensex, Nifty charts (Jun 14, 2019): profit booking emerges near lifetime highs

3 days ago  
Business / Blogs/ Subhankar Blog  
FIIs were net buyers of equity on Mon., Tue. and Thu. (Jun 10, 11 and 13), but net sellers on Wed. and Fri. (Jun 12 and 14). Their total net selling exceeded Rs 8.0 Billion. DIIs were net buyers of equity on Mon., Wed. and Fri., but net sellers on the other two days. Their total net buying was worth Rs 2.2 Billion, as per provisional figures.India's CPI based retail inflation rose to a 7 months high of 3.05% in May '19 from a revised 2.99% in Apr '19. However, WPI based wholesale inflation fell to a 22 months low of 2.45% in May '19 from 3.07% in Apr '19. The Index of Industrial Production (IIP) grew to a six months high of 3.4% in Apr '19 against 0.4% in Mar '19, but was lower than 4.5% in Apr '18. Some experts have questioned the veracity and sustainability of the improved Apr '19 data.India's trade deficit widened to US $15.4 Billion in May '19 against $14.6 Billion in May '18. While exports grew 4% to $30 Billion, imports grew 4.3% to 45.4 Billion.BSE Sense..
                 

Nifty chart: a midweek technical update (Jun 12, 2019)

6 days ago  
Business / Blogs/ Subhankar Blog  
FIIs were net buyers of equity on Mon. and Tue. (Jun 10 and 11), but were net sellers today. Their total net selling was worth Rs 7.4 Billion. DIIs were net sellers of equity on Tue., but were net buyers on Mon. and today. Their total net buying was worth Rs 2.9 Billion, as per provisional figures.Reigniting the debate on the accuracy of India's GDP growth numbers, the former Chief Economic Advisor, Arvind Subramanian mentioned in a research paper that analyses data on 17 different economic indicators that India's real GDP growth was only 3.5-5.5% during FY 2012-2017.The Prime Minister's Economic Advisory Council has refuted the claims made by the former CEA in his research paper. However, the jobless economic growth on the ground may be confirming - rather than refuting - Mr Subramanian's findings.The daily bar chart pattern of Nifty had touched a new high of 12103 on Jun 3. The index corrected sharply and tested support from its rising 20 day EMA on Jun 7. It has been consolidating s..
                 

Gold and Silver charts: correcting after upward breakouts

7 days ago  
Business / Blogs/ Subhankar Blog  
Gold chart patternNote the following comments made in the previous post on the daily bar chart pattern of Gold: "Recent volume spikes on up days indicate buying interest...Gold's price may make another attempt to break out above the 'wedge'."This time, the breakout above the 'falling wedge' (which is also the 'handle' of a large 'cup and handle' pattern) was successful. Gold's price shot up like a rocket to test its previous (Feb '19) top of 1350, but profit booking dropped it to a close below 1330.Daily technical indicators are looking overbought. MACD has risen sharply to enter its overbought zone. RSI has fallen from its overbought zone. Slow stochastic is sliding down inside its overbought zone. Gold's price may consolidate or correct towards 1310-1320 zone before it can resume its up move.After touching a high of 98.26 on May 23 - its highest level in 2 years - the US Dollar index dropped to a low of 96.40 on Jun 7 before recovering to 96.70. The fall may have triggered ..
                 

S&P 500 and FTSE 100 charts (Jun 07, 2019): short covering triggers pullback rallies

8 days ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternNote the following comment from last week's post on the daily bar chart pattern of S&P 500: "Some more correction, and a drop towards the support zone between 2700-2725 is likely."The index corrected further below its 200 day EMA on Mon. Jun 3, but received good support from the zone between 2700-2725. A 'V' shaped technical bounce propelled the index above its 20 day and 50 day EMAs back into bull territory by Thu. Jun 6.On Fri. Jun 7, the index breached the (purple) down trend line after spending 5 weeks below it, and closed with a 121 points (4.4%) weekly gain. The week's rally was accompanied by sliding volumes. A pullback towards the down trend line is a possibility. Daily technical indicators are looking bullish, and showing upward momentum. MACD has crossed above its signal line in bearish zone. RSI has moved above its 50% level after bouncing up from the edge of its oversold zone. Slow stochastic is rising sharply towards i..
                 

S&P 500 and FTSE 100 charts (May 31, 2019): bears regaining control

15 days ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following remark appeared in last week's post on the daily bar chart pattern of S&P 500: "As long as the index trades above its 200 day EMA, bulls need not worry too much."It is time for bulls to start worrying. The index successfully tested support from its 200 day EMA on May 29 and 30, but the support was breached on Fri. May 31. The index formed a small (8 points) downward 'gap' below its 200 day EMA, and closed in bear territory for the first time in four months.  Support at the 2750 level may not hold for long, as strong volumes on recent down days indicate bears are regaining control. Daily technical indicators are in bearish zones, and showing downward momentum. MACD is falling below its signal line. RSI has dropped down to the edge of its oversold zone. Slow stochastic sliding deeper inside its oversold zone. Some more correction, and a drop towards the support zone between 2700-2725 is likely. ..
                 

Gold and Silver charts: bears remain on top

21 days ago  
Business / Blogs/ Subhankar Blog  
Gold chart patternThe following remark appeared in the previous post on the daily bar chart pattern of Gold: "Slow stochastic has entered its overbought zone, and can trigger a pullback towards the top of the 'wedge'."The expected pullback turned into a correction. Gold's price dropped back inside the 'falling wedge' (which is the 'handle' of a large 'cup and handle') pattern, and fell below its three EMAs into bear territory.After touching a low of 1269 on May 21, Gold's price bounced up to close above its 200 day EMA - keeping bullish hopes alive. Recent volume spikes on up days indicate buying interest.Daily technical indicators are looking neutral to bearish. MACD is facing resistance from its signal line in bearish zone. RSI is facing resistance from its 50% level. Slow stochastic has bounced up from the edge of its oversold zone. Gold's price may make another attempt to break out above the 'wedge'.After touching a high of 98.26 on May 23 - its highest level in..
                 

Nifty chart: a midweek technical update (May 22, 2019)

27 days ago  
Business / Blogs/ Subhankar Blog  
FIIs turned net buyers of equity on Mon. and Tue. (May 20 and 21), but were net sellers today. Their total net buying was worth Rs 19.5 Billion. DIIs were net sellers of equity on all three trading days. Their total net selling was worth Rs 17.9 Billion, as per provisional figures.According to the World Economic Situations and Prospects (WESP) 2019 Mid-Year Update released by the United Nations, strong domestic consumption and investment will continue to support India's GDP growth, which is projected at 7% in 2019 and 7.1% in 2020.The debt crisis in IL&FS translated into higher borrowing costs and reduced market access for other NBFCs, adversely impacting the growth of the NBFC sector - as per a report by Fitch Ratings.Exit polls predicting a comfortable victory for the NDA in the recent general elections encouraged FIIs to go on a buying spree. The daily bar chart pattern of Nifty formed a 165 points upward 'gap' on Mon. May 20, and closed above 11800 for the first time ever.FII b..
                 

Sensex, Nifty charts (May 17, 2019): pullbacks after downward breakouts from 'diamond' patterns

one month ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on all five trading days. Their total net selling exceeded Rs 62.2 Billion. DIIs were net buyers of equity on all five trading days, and more than matched the pace of FII selling. Their total net buying was worth Rs 67.3 Billion, as per provisional figures.In Apr 2019, India's trade deficit widened to a five months high of US $15.33 Billion, compared to $10.9 Billion in Mar '19 and $13.72 Billion in Apr '18.Merchandise export in Apr '19 grew 0.64% (a four months low) to $26.07 Billion - down sharply from $32.6 Billion in Mar '19. Imports increased 4.48% (a six months high) to $41.4 Billion - on the back of higher oil and gold imports.BSE Sensex index chart patternThe following comments were made in last week's post on the daily bar chart pattern of Sensex: "Sensex is just above a strong support zone, from where a technical bounce can be expected."On Mon. May 13, the index dropped down to completely fill the 125 points 'gap' formed on Mar 12. During the n..
                 

S&P 500 and FTSE 100 charts (May 10, 2019): bears use US-China trade war as excuse to strike hard

one month ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe daily bar chart pattern of S&P 500 dropped below the 'rising wedge' and its 20 day EMA intra-day on Mon. May 6, but pulled back to close just inside the 'wedge' by the end of the day.Bears took control on Tue. May 7. The index dropped sharply below its 20 day EMA and closed below it, but received good support from its 50 day EMA. The next day, the index traded below its 20 day EMA but above its 50 day EMA.An intra-day fall below the 50 day EMA on Thu. May 9 was followed by a pullback and close above it. On Fri. May 10, the index formed an 'outside day' candlestick pattern (lower low, higher high), but failed to close above its falling 20 day EMA - losing 2.2% on a weekly closing basis.Daily technical indicators are looking bearish. MACD is falling below its signal line in bullish zone. RSI is trying to recover after falling below its 50% level. Slow stochastic has bounced up a bit from the edge of its oversold zone. Friday..
                 

WTI and Brent Crude Oil charts: in bull markets, but facing bear resistances

one month ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartAfter a bit of sideways consolidation near the upper edge of the 'support-resistance zone' (between 62 and 64), the daily bar chart pattern of WTI Crude Oil bounced up to touch a high of 66.60 on Apr 23 - its highest level in nearly 6 months.The 'golden cross' of the 50 day EMA above the 200 day EMA technically confirmed a return to a bull market. However, overbought technical indicators, which showed negative divergences by touching lower tops, triggered a correction.Oil's price dropped below the 'support-resistance zone' and its 20 day and 50 day EMAs, but bounced up after testing support from its 200 day EMA. Formation of a 'reversal day' bar (lower low, higher close) and a pullback inside the 'support-resistance zone' ought to encourage bulls.Daily technical indicators are looking bearish after correcting overbought conditions. MACD is falling below its signal towards neutral zone. RSI has dropped below its 50% level. Slow stochastic has falle..
                 

Gold and Silver charts: bears back on top

one month ago  
Business / Blogs/ Subhankar Blog  
Gold chart patternThe daily bar chart pattern of Gold appears to have formed a bearish pattern of 'lower tops, lower bottoms' during the past two months. However, bulls need not lose heart just yet.Why? A couple of technical reasons: (1) Gold's chart indicates formation of a large 'cup and handle' pattern - with a possible upward breakout above 1350; (2) The past 2 months' trading has formed the 'handle', which itself is looking like a 'falling wedge' from which the likely breakout is upwards.There is an important caveat. Gold's price had dropped below its 200 day EMA into bear territory, and touched a low of 1266 on Apr 23 before recovering a bit. A fall below 1260 - which is at the mid-point of the 'cup' - can negate the 'cup and handle' pattern.Daily technical indicators are looking bearish. MACD is facing resistance from its falling signal line in bearish zone. RSI is below its 50% level. Slow stochastic has emerged from its oversold zone, but its upward momentum has stal..
                 

Nifty chart: a midweek technical update (Apr 24, 2019)

one month ago  
Business / Blogs/ Subhankar Blog  
FIIs were net buyers of equity on Mon. and Wed. (Apr 22 and 24), but net sellers on Tue. Their total net buying was worth Rs 8.1 Billion. DIIs were net sellers of equity on Mon. and Wed. but net buyers on Tue. (Apr 23). Their total net selling was worth Rs 5.3 Billion, as per provisional figures.A key indicator of consumer demand, viz. auto sales, has been hit by relatively tight financial conditions, as banks have been reluctant to pass along interest rate cuts. Despite a spurt in Mar '19, India's exports remain at risk due to a slowing global economy and US-China trade war.According to rating agency ICRA, the domestic micro finance industry is on the path of recovery, and is likely to see a growth of 20-22% in FY 2019-20.The daily bar chart pattern of Nifty appears to have formed a large 'rising wedge' pattern from Feb '19 onwards. Such a pattern has bearish implications. So, it came as no surprise when a downward breakout occurred on Mon. Apr 22.The index fo..
                 

WTI and Brent Crude Oil charts: rallies stall temporarily at resistance zones

2 months ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartNote the following comments from the previous post on the daily bar chart pattern of WTI Crude Oil: "The zone between 62 and 64 had acted as a support zone during Apr-Aug '18. It is likely to act as a resistance zone for a while."Oil's price managed to move above the resistance zone, and closed above the 64 level on Apr 8 and 10. Sliding volumes showed lack of follow-up buying. Oil's price has drifted down inside the resistance zone (between 60-62).The impending 'golden cross' of the 50 day EMA above the 200 day EMA will technically confirm a return to a bull market. Expect oil's price to move higher after a bit of consolidation or correction.Daily technical indicators are correcting overbought conditions. MACD is about to cross below its rising signal line in overbought zone. RSI has dropped from its overbought zone. Slow stochastic has fallen to the edge of its overbought zone. On longer term weekly chart (not shown), oil's price closed abo..
                 

Nifty chart: a midweek technical update (Apr 10, 2019)

2 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net buyers of equity on all three trading days this week. Their total net buying was worth Rs 29.7 Billion. DIIs were net sellers of equity on Mon. and Tue. (Apr 8 and 9) but net buyers today. Their total net selling was worth Rs 8.5 Billion, as per provisional figures.Fall in auto sales, shortfall in direct tax collection and household savings, 7% contraction in FDI during Apr-Dec '18 are all pointing to a slow down in the Indian economy. According to the Federation of Indian Export Organisations (FIEO), rising protectionism, fluctuating commodity prices, inadequate availability of liquidity and slowdown in global trade will be major challenges faced by exporters.Note the following comment from last week's technical update on the daily bar chart pattern of Nifty: "The last ten trading sessions have formed a bearish 'rising wedge' pattern, from which a downward breakout can be expected."As expected, a breakout below the 'wedge' occurred on T..
                 

Sensex, Nifty charts (Apr 05, 2019): brief retreats after touching new highs

2 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net buyers of equity on Mon., Tue. and Fri. (Apr 1, 2 and 5) but were net sellers on Wed. and Thu. (Apr 3 and 4). Their total net buying was worth Rs 9.7 Billion during the week. DIIs were net buyers of equity on Thu. but net sellers on the other four days. Their total net selling was worth Rs 6.7 Billion, as per provisional figures.Nikkei India's Services PMI slipped to 52.0 in Mar '19 from 52.5 in Feb '19. It was the slowest growth (a number above 50 indicates growth) since Sep '18. The Composite PMI (Manufacturing + Services) fell to 52.7 in Mar '19 from 53.8 in Feb '19.After cutting repo and reverse repo rates by 25 bps (0.25%) - acknowledging a slowdown in India's growth momentum - RBI has lowered the GDP growth forecast for FY 2019-20 to 7.2% from the earlier estimate of 7.4%.BSE Sensex index chart patternThe daily bar chart pattern of Sensex rose to touch a new lifetime high of 39270 on Wed. Apr 3 but formed a 'reversal day' bar ..
                 

S&P 500 and FTSE 100 charts (Mar 29, 2019): gradually overcoming strong bear resistances

2 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe 'V' shaped recovery rally on the daily bar chart pattern of S&P 500 continues to face resistance from bears. Bulls have managed to overcome the resistance zone between 2800-2825 after five weeks of struggle.The next resistance zone between 2850-2875 is looming above. A convincing move above 2875 will clear the path for the index to touch a new high. Bears may continue to yield ground grudgingly.Daily technical indicators are in bullish zones after correcting overbought conditions, but are not showing much upward momentum. MACD is below its sliding signal line. RSI has bounced up from neutral zone. Slow stochastic is moving sideways after falling from its overbought zone. Negative divergences on all three indicators - which failed to touch new highs with the index - triggered a correction below the rising 20 day EMA.On longer term weekly chart (not shown), the index closed above its three weekly EMAs in a long-ter..
                 

Sensex, Nifty charts (Mar 22, 2019): hit pause buttons after month-long rallies

2 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net buyers of equity on all four trading days. Their total net buying was worth Rs 71.0 Billion during the week. DIIs were net sellers on all four trading days. Their total net selling was worth Rs 45.2 Billion, as per provisional figures.According to IMF, India has been one of the fastest growing large economies in the world. Though important reforms have been implemented, more reforms are needed to sustain the growth rate.Fitch Ratings have cut India's GDP growth forecast for FY 2019-20 to 6.8% from its previous estimate of 7% due to weaker-than-expected momentum in the economy.BSE Sensex index chart patternIn a 'Holi'day-shortened trading week, the daily bar chart pattern of Sensex continued its upward climb on the back of strong buying by FIIs. The index made back-to-back attempts (on Wed. Mar 20 and Fri. Mar 22) to breakout above the upward-sloping channel, but failed.On Friday, the index touched an intra-day high of 38565 - its highest level in more than ..
                 

Sensex, Nifty charts (Mar 15, 2019): flood of FII money washes away all resistances

3 months ago  
Business / Blogs/ Subhankar Blog  
FIIs are on a buying spree. Their total net buying was worth a massive Rs 148.2 Billion during the week. DIIs were net sellers on all five trading days. Their total net selling was worth Rs 74.0 Billion, as per provisional figures.India's WPI based inflation rose to 2.93% in Feb '19 from 2.76% in Jan '19, due to rise in food prices. WPI based inflation was 2.74% in Feb '18.India's trade deficit narrowed to US $9.6 Billion in Feb '19 from US $14.73 Billion in Jan '19. Merchandise exports grew 2.44% YoY to US $26.67 Billion while imports were down 5.41% to US $36.26 Billion.BSE Sensex index chart patternThe daily bar chart pattern of Sensex broke out above the Fibonacci resistance zone (refer last week's post) on Mon. Mar 11, and continued to soar higher as a flood of FII inflow fuelled a sharp rally.The entire trading since the low of 33292 touched on Oct 26 '18 has formed a wide upward-sloping channel. The index faced resistance from the upper edge of the channel on..
                 

S&P 500 and FTSE 100 charts (Mar 08, 2019): pullback rallies stall at resistance levels

3 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following comment appeared in last week's post on the daily bar chart pattern of S&P 500: "...the index closed above its three weekly EMAs in a long-term bull market for the fifth week in a row, but has formed a long-legged doji candlestick pattern that can halt the rally."On Mon. Mar 4, the index touched an intra-day high of 2817, but formed a 'reversal day' bar by closing below the resistance zone (between 2800 and 2825). That was just the excuse bears needed to swing into action.The index corrected during the rest of the week, falling below its 20 day EMA but receiving support from its 50 day and 200 day EMAs. The 'golden cross' of the 50 day EMA above the 200 day EMA has not been a convincing one. The index lost 2.2% on a weekly closing basis.Daily technical indicators are looking bearish after correcting overbought conditions. MACD is falling below its signal line in bullish zone. RSI is seeking support from its 50% l..
                 

Gold and Silver charts: three month long rallies face sharp corrections

3 months ago  
Business / Blogs/ Subhankar Blog  
Gold chart patternThe daily bar chart pattern of Gold received good support from the middle Bollinger Band (20 day SMA, marked by green dotted line) and rose quickly to touch a high of 1349.80 on Feb 20.By closing above the upper Bollinger Band, the door was left wide open for bears. Gold's price corrected sharply below the lower Bollinger Band and closed below its 50 day EMA after more than three months.Daily technical indicators are showing downward momentum after correcting overbought conditions. MACD is falling below its signal line in bullish zone. RSI has dropped below its 50% level. Slow stochastic has entered its oversold zone, and can trigger a pullback towards the 50 day EMA.After a sharp fall below 96 on Feb 26, the US Dollar index is rising towards 97. That seems to have dampened bullish enthusiasm. The strong rally from the Nov '18 low has ended.On longer term weekly chart (not shown), gold’s price dropped to seek support from its 20 week EMA, and closed above its thr..
                 

WTI and Brent Crude Oil charts: overcome resistance zones but remain below 200 day EMAs

3 months ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartJust when it appeared that bears were getting the upper hand, the daily bar chart pattern of WTI Crude Oil rallied smartly past its 20 day and 50 day EMAs and the 'support/resistance zone' (between 53 and 55).The bullish fervour didn't last long. The rally failed to reach its sliding 200 day EMA, and pulled back to the 'support/resistance zone' before bouncing up. Such a pullback usually provides a buying opportunity.Oil's price needs to close convincingly above the Fibonacci resistance zone between 59 and 63 (which are the 50% and 61.8% retracement levels of the fall from the Oct '18 top of 76 to the Dec '18 low of 42) before bulls can regain control of the chart.Daily technical indicators are in bullish zones but not showing much upward momentum. MACD is seeking support from its signal line in bullish zone. RSI is above its 50% level. Slow stochastic has fallen from its overbought zone. Some consolidation is likely before oil's price c..
                 

Sensex, Nifty charts (Feb 22, 2019): sideways consolidations continue

3 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on Mon. and Tue. (Feb 18 and 19) but turned net buyers on the last three days. Their total net buying was worth Rs 50.3 Billion. DIIs were net buyers of equity on all five trading days. Their total net buying was worth Rs 46.5 Billion, as per provisional figures.On Fri. Feb 22, net buying by FIIs exceeded Rs 63 Billion, which turned them into net buyers month-to-date. A bulk deal in Kotak Mahindra Bank (ING sold its residual 3% holding) was the probable reason.Nifty's EPS for Q3 (Dec '18) hit an 11-quarter low of Rs 96.50. This is the first instance since Q1 (Jun '16) when the EPS slipped below Rs 100. It was also the 4th consecutive quarter of lower-than-estimated earnings for the Nifty 50 companies.BSE Sensex index chart patternThe daily bar chart pattern of Sensex closed below the 200 day EMA on Mon. and Tue. (Feb 18 and 19) after 2 months - thanks mainly to FII selling.Just when it seemed bears were getting the upper hand, th..
                 

S&P 500 and FTSE 100 charts (Feb 15, 2019): pullback rallies gather strength

4 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe pullback rally from the Dec '18 low on the daily bar chart pattern of SPX 500 received good support from the 200 day EMA, and gathered strength as it climbed along the upper Bollinger Band.The index is trading above its three EMAs in bull territory. The 'golden cross' of the 50 day EMA above the 200 day EMA will technically confirm a bull market.Bears may try to prevent that from occurring by defending the 'resistance zone' between 2800 and 2825 - which had proved to be a strong hurdle for bulls back in Oct and Nov '18.Daily technical indicators are looking overbought. MACD is rising above its signal line in overbought zone. RSI is poised to enter its overbought zone. Slow stochastic has re-entered its overbought zone, but is showing negative divergence by touching a lower top. Some consolidation around current level is possible before the index makes an attempt to cross above the resistance zone. On longer term weekly chart (..
                 

WTI and Brent Crude Oil charts: counter-trend rallies struggling to overcome resistance zones

4 months ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartThe daily bar chart pattern of WTI Crude Oil touched an intra-day high of 55.75 on Feb 4 - its highest level in nearly 3 months - but formed a 'reversal day' bar (higher high, lower close) that brought bears to the fore.Oil's price corrected below its converging 20 day and 50 day EMAs and closed below the 'Support/Resistance zone' (between 53 and 55) that is proving to be a tough hurdle for bulls.Daily technical indicators are looking bearish. MACD has crossed below its signal line after forming a 'rounding top' reversal pattern in bullish zone. RSI has slipped below its 50% level in neutral zone. Slow stochastic is falling below its 50% level.Some more correction or consolidation is likely.On longer term weekly chart (not shown), oil's price faced strong resistance from its falling 20 week EMA and dropped to close well below its three weekly EMAs in long-term bear territory. Weekly technical indicators are looking neutral to bearish. Br..
                 

Nifty chart: a midweek technical update (Feb 06, 2019)

4 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on Mon. (Feb 4), but net buyers on Tue. and Wed. (Feb 5 and 6). Their total net buying was worth Rs 10.0 Billion. DIIs were also net sellers of equity on Mon., but net buyers on Tue. and Wed. Their total net buying was worth Rs 6.5 Billion, as per provisional figures.After slipping to 53.2 in Dec '18, Nikkei India's Manufacturing PMI rose to 53.9 in Jan '19 - staying above the 50 mark (indicating growth) for the 18th straight month. However, Nikkei India's Services PMI declined to 52.2 in Jan '19 from 53.2 in Dec '18. The Composite PMI (Manufacturing+Services) was at 53.6 in Jan '19 - the same as in Dec '18.Passenger vehicle sales remained sluggish in Jan '19. While Honda showed 23% growth, Maruti, Hyundai, M&M sales were flat. Tata Motors, Toyota, Ford Renault, Volkswagen showed degrowth. In Commercial Vehicles, Ashok Leyland and M&M showed sales growth; Tata Motors showed degrowth.Bulls have turned the tables on bears during..
                 

Sensex, Nifty charts (Feb 01, 2019): facing resistances from Fibonacci retracement zones

4 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on Tue. (Jan 29) but net buyers on the other four trading days. Their total net buying was worth a huge Rs 43.2 Billion. DIIs were net buyers of equity on the first three trading days, but net sellers on Thu. and Fri. (Jan 31 and Feb 1). Their total net selling was worth Rs 9.6 Billion, as per provisional figures.For the month of Jan '19, FIIs were net buyers of equity worth Rs 1.3 Billion - thanks to massive buying worth Rs 30 Billion on the last day of the month. DIIs were net buyers of equity worth Rs 21.5 Billion.In a blow to government's job creation claims, an official survey conducted by NSSO during Jul '18 to Jun '17 showed India's unemployment rate was 6.1% - the highest since 1972-73. Spin doctors tried to downplay the findings by claiming the data was neither 'approved' nor 'final'.The interim budget announced on Feb 1 was expected to be populist in an election year, and it was. Benefits were a..
                 

S&P 500 and FTSE 100 charts (Jan 25, 2019): pullback rallies hit road blocks

4 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternNote the following comment from last week's post on the daily bar chart pattern of SPX 500: "Bears can be expected to put up a stronger resistance when trading starts on Tue. Jan 22 (after the long weekend)."On cue, the index retreated on Tue. Jan 22 but received good support from its 50 day EMA. After consolidating sideways within a narrow range for the next two days, the index opened with an upward 'gap' on Fri. Jan 25, and crossed above the (purple) down trend line intra-day.However, it dropped down to close exactly on the down trend line - losing 6 points during the truncated trading week. Bulls have their work cut out to overcome twin overhead resistances from the upper Bollinger Band and the 200 day EMA. Bears are unlikely to give up control in a hurry.Daily technical indicators are in bullish zones, but not showing much upward momentum. MACD is rising above its signal line. RSI is moving sideways above its 50% level. Slow stochastic has bounce..
                 

Gold and Silver charts: bull rallies pullback after touching 6 month highs

4 months ago  
Business / Blogs/ Subhankar Blog  
Gold chart patternNote the following comments from the previous post on the daily bar chart pattern of Gold: "Formation of a 'reversal day' bar (higher high, lower close) with a surge in volumes have put a temporary halt to the rally. Some correction/consolidation can be expected after a hectic rally."Gold's price consolidated sideways within a small 'symmetrical triangle' for two weeks before a downward breakout occurred on Fri. Jan 18th. The 20 day EMA provided support - as it has done since the beginning of Dec '18. However, the support may not hold for long.Daily technical indicators are in bullish zones, but looking bearish and showing downward momentum. MACD has crossed below its signal line and is ready to drop from its overbought zone. RSI and Slow stochastic are falling towards their respective 50% levels.Gold's price may fall to the 'support/resistance zone' between 1260 and 1270 - where some support can be expected. A further fall and a test of support from the 200 day EMA c..
                 

Nifty chart: a midweek technical update (Jan 16, 2019)

5 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net buyers of equity on Tue. (Jan 15), but net sellers on Mon. & Wed. (Jan 14 & 16). Their total net selling was worth Rs 6.6 Billion. DIIs were net buyers on all three trading days. Their total net buying was worth Rs 12.5 Billion, as per provisional figures.India's wholesale and retail inflation eased further in Dec '18 on the back of cooling food and fuel prices. CPI-based inflation slipped to an 18 months low of 2.19% from 2.33% in Nov '18 and 5.21% in Dec '17. WPI-based inflation was at an 8 months low of 3.8% against 4.64% in Nov '18 and 3.58% in Dec '17. A vicious battle for supremacy is raging on the daily bar chart pattern of Nifty, with no quarter given and none asked.On Mon. Jan 14, the index dropped below the 'diamond' pattern - within which it has been trading since the beginning of Nov '18 - and even slipped below its 200 day EMA into bear territory intra-day. Just when it looked like bears were going to dominate, bulls..
                 

Sensex, Nifty charts (Jan 11, 2019): poised to breakout from 'diamond' patterns

5 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net buyers of equity on Mon. and Wed. (Jan 7 and 9) but net sellers on the other three days during the week. Their total net selling was worth Rs 5.7 Billion. DIIs were net sellers of equity on Mon., but net buyers on the other four days. Their total net buying was worth Rs 11.3 Billion, as per provisional figures.India's IIP (Index of Industrial Production) dropped to a disappointing 17 months low of 0.5% in Nov '18 from an upwardly-revised 8.4% in Oct '18, due to a high base effect and a contraction in manufacturing growth. The previous low of 0.3% occurred in Jun '17 (a month before GST introduction).BSE Sensex index chart patternThe bearish 'rising wedge' pattern (refer last week's post) on the daily bar chart pattern of Sensex has morphed into a 'diamond' pattern, which usually has bearish implications. In other words, the likely breakout from the pattern is downwards.Since a 'diamond' - a somewhat rare pattern - ten..
                 

S&P 500 and FTSE 100 charts (Jan 04, 2019): pullback rallies facing bear resistance

5 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternIn a holiday shortened trading week, the daily bar chart pattern of S&P 500 continued to show volatility. It closed just above 2505 on Mon. & Wed. (Dec 31 & Jan 2), dropped to close below 2450 on Thu. Jan 3, and then bounced up to close at 2532 on Fri. Jan 4 - gaining 46 points (1.8%) on a weekly closing basis.Note that the index is facing resistance from its 20 day SMA (middle Bollinger Band marked by green dotted line), and is trading well below its falling 50 day and 200 day EMAs in a bear market.Daily technical indicators have corrected oversold conditions, but remain in bearish zones. MACD has crossed above its signal line in its oversold zone. RSI and Slow stochastic are rising towards their respective 50% levels. Bears may use the pullback rally to sell.On longer term weekly chart (not shown), the index closed above its 200 week EMA in long-term bull territory, but remains well below its falling 20 week and 50 w..
                 

S&P 500 and FTSE 100 charts (Dec 28, 2018): pullback after touching new lows

5 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following comments were made in last week's post on the daily bar chart pattern of S&P 500: "A spike in trading volumes is possibly an indication of a 'selling climax'. A technical bounce may follow." After closing below the lower Bollinger Band at 2351 on Dec 24 - a 20% correction from the (Sep 21) top of 2941 that confirms a bear market - the index recovered strongly on Boxing Day. It first touched a new low of 2347, and then recovered 121 points to close at 2468. Formation of a 'reversal day' bar (lower low, higher close) encouraged bulls to embark on a pullback rally that touched the holiday-shortened week's high of 2520 on Fri. Dec 28. The index closed with a weekly gain of 69 points (2.9%), but formed a small 'reversal day' bar (higher high, lower close) that may bring the pullback rally to an end. The index is trading well below its 200 day EMA in a bear market. Daily technical indicators are correcting ov..
                 

WTI and Brent Crude Oil charts: bottoms fall out as bear onslaught continues

5 months ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartThe following comment was made in the previous post on the daily bar chart pattern of WTI Crude Oil: "Expect bears to remain in control despite the OPEC production cut because of demand slow down."Though the 'death cross' (marked by grey ellipse) had technically confirmed a bear market, bulls tried for the better part of two weeks to put a floor on oil's price at 50. Strong resistance from the plummeting 20 day EMA proved insurmountable. The temporary support at 50 was breached. Oil's price dropped sharply to close at 46.24 on Tue. Dec 18.That was a signal for bulls to turn tail and run. Oil's price dropped to its lowest level in 18 months, and closed below 43.Daily technical indicators are looking oversold and showing downward momentum. Slow stochastic is falling deeper inside its oversold zone. MACD and RSI are showing positive divergences by touching higher lows inside their respective oversold zones.Some price consolidation can be expected, as bull..
                 

Nifty chart: a midweek technical update (Dec 19, 2018)

6 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on Mon. (Dec 17) but net buyers on Tue. & Wed. (Dec 18 & 19). Their total net buying was worth Rs 12.9 Billion. DIIs were net sellers on all three days. Their total net selling was worth Rs 7.4 Billion, as per provisional figures.Hong Kong based billionaire businessman Victor Fung has said that India has a window of opportunity in the midst of US-China trade war. The trade imbalance between China and India will get corrected as Chinese consumption of Indian goods increases.Due to demonetisation, the cost of printing currency notes escalated to Rs 79.65 Billion in FY 2016-17 from Rs 34.21 Billion in FY 2015-16, as per a written reply to the Rajya Sabha by the Finance Minister.FII buying extended the counter-trend rally on the daily bar chart pattern of Nifty. The index had consolidated inside the Oct 4 downward 'GAP' on Thu. & Fri. (Dec 13 & 14). On Mon. Dec 17, it moved above the 'GAP' once again and rose fur..
                 

Sensex, Nifty charts (Dec 14, 2018): bulls refusing to accept bear dominance

6 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net buyers of equity on Mon., Thu. & Fri. (Dec 10, 13 & 14), but net sellers on the other two days of the week. Their total net selling was worth Rs 20.7 Billion. DIIs were net buyers of equity on Tue. & Wed. (Dec 11 & 12), but net sellers on the other three days. Their total net buying was worth Rs 28.8 Billion, as per provisional figures.India's WPI-based inflation fell to a three months low of 4.64% in Nov '18 from 5.28% in Oct '18 - mainly due to a decline in food and fuel prices. WPI was 4.02% in Nov '17.Exports grew only 0.8% to US $26.5 Billion in Nov '18, while imports grew 4.31% to US $43.17 Billion. Trade deficit widened to US $16.67 Billion. During Apr-Nov '18, trade deficit was US $128.13 Billion against US $106.37 Billion during Apr-Nov '17.BSE Sensex index chart patternThe daily bar chart pattern of Sensex faced sharp sell-offs on Mon. Dec 10 and the early part of Tue. Dec 11, as state electi..
                 

S&P 500 and FTSE 100 charts (Dec 07, 2018): bears brook no nonsense from bulls

6 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following comments appeared in last week's post on the daily bar chart pattern of S&P 500: "The next hurdle for bulls is the previous (Nov 7) index top of 2815. Bears can be expected to put up some resistance there - as they had done in Oct '18."In a curtailed trading week, the index touched an intra-day high of 2800 on Mon. Dec 3. Bear resistance caused a drop to an intra-day low of 2773 before the index closed at 2790 (near its opening level) - forming a 'doji' candlestick pattern that some times mark a change of direction.The next day, the index fell sharply below its three EMAs into bear territory. After the mid-week holiday (due to President Bush's funeral), bears attacked with renewed vigour. The index touched an intra-day low of 2621, but recovered substantially to close at 2696.Bulls failed to drive home their advantage. The index touched an intra-day high of 2708 on Fri. Dec 7, but closed at 2633 - losing 127 points (4.6%) on a weekl..
                 

Gold and Silver charts: bears still on top

6 months ago  
Business / Blogs/ Subhankar Blog  
Gold chart patternThe daily bar chart pattern of Gold has re-entered and closed inside the 'Support/Resistance zone' between 1230 & 1240 (refer previous post), and may make an attempt to test resistance from its falling 200 day EMA.Strong trading volumes during recent down days reveal that bears are very much on top. Expect bears to put up a fight to defend the long-term moving average and prevent gold's price from entering bull territory. Daily technical indicators are looking bullish. MACD has crossed above its '0' line to enter bullish zone. RSI is rising above its 50% level. Slow stochastic has entered its overbought zone.Some near-term upside is likely. Gold's price needs to move convincingly above its 200 day EMA and the 1280 level for bulls to regain control of the chart.On longer term weekly chart (not shown), gold’s price closed above its 20 week EMA, but below its 50 week and 200 week EMAs in long-term bear territory. Weekly technical in..
                 

Nifty chart: a midweek technical update (Nov 28, 2018)

6 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net buyers of equity on all three trading days this week. Their total net buying was worth Rs 18.3 Billion. DIIs were net sellers on Wed., but net buyers on Mon. & Tue. Their total net buying was worth Rs 0.53 Billion, as per provisional figures.The number of companies that failed to meet earnings expectations during Q2 (Sep '18) outnumbered the outperformers by 2.5 times. As many as 20 Nifty companies saw EPS downgrades against 8 with EPS upgrades of 3% or more.India Inc's foreign borrowings dipped nearly 66% to US $1.41 Billion in Oct '18 against US $4.09 Billion through ECBs and FCCBs in Oct '17.The daily bar chart pattern of Nifty had partly filled the downward 'gap' (of 89 points formed on Oct 4) by rising above its three EMAs to touch an intra-day high of 10775 on Nov 19.Bears attacked immediately. Nifty dropped below its three EMAs and touched an intra-day low of 10490 on Nov 26, but formed a 'reversal day' bar (lower low, hi..
                 

Sensex, Nifty charts (Nov 22, 2018): bears show who's boss

6 months ago  
Business / Blogs/ Subhankar Blog  
In a holiday-shortened trading week, FIIs were net sellers of equity on Tue. & Wed. (Nov 20 & 21), but net buyers on Mon. & Thu. (Nov 19 & 22). Their total net selling was worth Rs 8.6 Billion. DIIs were net buyers of equity on Wed. & Thu., but net sellers on Mon. & Tue. Their total net buying was worth Rs 3.0 Billion, as per provisional figures.OECD and Moody's have projected India's GDP growth to moderate to 7.3% in 2019, whereas RBI expects FY 2018-19 GDP growth at 7.4%. The recent decline in oil prices may reduce the Current Account Deficit (CAD) to 2.6% of GDP against the earlier expectation of 2.8%.With China's Belt and Road initiative facing a pushback, the UAE, Japan, France, Germany, Italy and UK are in talks with India to launch joint projects in Africa. Morocco has also expressed interest for joint projects in West Africa.BSE Sensex index chart patternNote the following comments from last week's post on the dail..
                 

Sensex, Nifty charts (Nov 16, 2018): bears reluctantly give up some ground

7 months ago  
Business / Blogs/ Subhankar Blog  
After 7 straight months of being bears, FIIs have turned bulls in Nov '18. They were net sellers of equity on Tue. Nov 13, but net buyers on the other four days. Their total net buying was worth Rs 35 Billion. DIIs have turned bears for the first time since Mar '17. They were net buyers of equity on Tue., but net sellers on the other four days. Their total net selling was worth Rs 15.5 Billion, as per provisional figures.India's trade deficit widened to US $17.1 Billion in Oct '18 compared to US $14.6 Billion in Oct '17. Exports rose 17.9% to US $27 Billion due to low base effect. Imports rose 17.6% to US $44.1 Billion. During Apr-Oct '18, exports grew 13.3% to US $191 Billion. Imports grew 16.4% to US $302.5 Billion, leaving a trade deficit of US $111.5 Billion.BSE Sensex index chart patternThanks to FII buying, the daily bar chart pattern of Sensex rose above its 200 day and 50 day EMAs and closed above all three EMAs for the first time in more..
                 

S&P 500 and FTSE 100 charts (Nov 09, 2018): bears grudgingly give up some ground

7 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe daily bar chart pattern of S&P 500 climbed above its three EMAs back into bull territory on Wed. Nov 7. Bear selling dropped the index to seek support from its entangled 20 day and 200 day EMAs.The index bounced up to close just above 2780 with a gain of 2.1% on a weekly closing basis. However, bearish hopes have been kept alive as the index closed below its 50 day EMA.Daily technical indicators are giving conflicting signals. MACD is rising above its signal line in bearish zone. RSI is falling towards its 50% level after crossing above it. Stochastic is about to fall from its overbought zone. Expect some consolidation or correction.On longer term weekly chart (not shown), the index closed just below its 20 week EMA but above its 50 week and 200 week EMAs in a long-term bull market. Weekly technical indicators are turning bullish. MACD is falling below its signal line in bullish zone, but its downw..
                 

S&P 500 and FTSE 100 charts (Nov 02, 2018): bulls fight back but bears not ready to give up control yet

7 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following comments appeared in last week's post on the daily bar chart pattern of S&P 500: "RSI and Slow stochastic are showing positive divergences by not falling lower with the index. A likely technical bounce may face more selling by bears."The expected technical bounce took the index briefly above the Fibonacci support/resistance zone between 2689 and 2737 (shaded area on chart) when the index closed at 2740 on Thu. Nov 1. On Fri. Nov 2, the index touched an intra-day high of 2756, but faced resistance from its falling 20 day EMA and dropped back inside the support/resistance zone - forming a 'reversal day' bar (higher high, lower close) in the process.Daily technical indicators have corrected oversold conditions but are not showing much upward momentum. MACD has crossed above its signal line in bearish zone. RSI bounced up from the edge of its oversold zone, but has stopped short of its 50% level. Stochastic crossed above ..
                 

WTI and Brent Crude Oil charts: sharp corrections find temporary support

7 months ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartThe daily bar chart pattern of WTI Crude Oil started correcting after touching a 52 week high of 76.90 on Oct 3. After receiving some support from its 50 day EMA, oil's price dropped sharply below its 50 day EMA on Oct 17. Three days of sideways consolidation was followed by another sharp fall below its 200 day EMA on Oct 23. Since then, oil's price has been consolidating within a bearish 'flag' pattern. Some more consolidation/correction is likely.Daily technical indicators are looking bearish and oversold. MACD is falling below its signal line and entered its oversold zone. RSI is hovering just above its oversold zone. Slow stochastic is trying to emerge from its oversold zone.The falling 20 day EMA has crossed below the falling 50 day EMA - like it did in Jun & Aug '18 - indicating near term bearishness. However, oil's price is trading just above its 200 day EMA, keeping bullish hopes alive. On longer term weekly chart (not shown), oil's price bounce..
                 

Nifty chart: a midweek technical update (Oct 24, 2018)

7 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on all three trading days this week. Their total net selling was worth Rs 29 Billion. DIIs were net buyers on all three days. Their total net buying was worth Rs 22.9 Billion, as per provisional figures.The net direct tax collection in India grew by 15.7% to Rs 4.89 Trillion YoY during the period Apr - Oct 3rd week, 2018 - meeting 42.5% of the full fiscal year target of Rs 11.5 Trillion.Tight monetary conditions for NBFCs may soon begin to hit the economy as funds for consumption and investment are slowly getting squeezed. Sale of motorcycles, tractors, plywood and cement have slowed in the past few weeks.The daily bar chart pattern of Nifty touched an intra-day low of 10102 on Tue. Oct 23 - its lowest level since Mar 28 '18. All gains made during Apr-Aug '18 got wiped out during Sep-Oct '18. The index is trading well below its three falling EMAs in bear territory. Daily technical indicators are in bearish zones, and are not..
                 

Sensex, Nifty charts (Oct 19, 2018): Fibonacci support levels holding for now

8 months ago  
Business / Blogs/ Subhankar Blog  
In a holiday-curtailed trading week, FIIs were net sellers of equity on Tue. & Fri. (Oct 16 & 19) but net buyers on Mon. & Wed. (Oct 15 & 17). Their total net selling was worth Rs 15.8 Billion. DIIs were net buyers of equity on Mon. & Tue. but net sellers on Wed. & Fri. Their total net buying was worth Rs 10.1 Billion, as per provisional figures.Passenger vehicle sales have declined for three consecutive months due to floods in Kerala and higher ownership costs leading to postponement of purchases.As per RBI, India's foreign exchange reserves fell by US $5.1 Billion from $399.6 Billion in the week ending Oct 5 to $394.5 Billion in the week ending Oct 12. It was the highest weekly fall in 7 years.BSE Sensex index chart patternThe following remark was made in last week's post on the daily bar chart pattern of Sensex: "A pullback to the zone between 35370 and 35736, followed by a corrective move towards 32372 (lower edge of the support zone..
                 

S&P 500 and FTSE 100 charts (Oct 12, 2018): bears force bulls on the ropes

8 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternPossibility of some more correction was mentioned in last week's post on the daily bar chart pattern of S&P 500. Yet, the vicious bear attack on Wed. & Thu. (Oct 10 & 11) seemed to catch bulls unawares.The index fell vertically to close below its 200 day EMA for the first time in 6 months. By touching an intra-day low of 2710 on Oct 11, the index dropped into the support zone between 2737 and 2689 (which are the 50% and 61.8% Fibonacci retracement levels respectively of the 408 points rally from the Feb 9 low of 2533 to the Sep 21 top of 2941).Volume spikes on Wed. & Thu. may be the sign of a 'selling climax'. On Fri. Oct 12, the index bounced up to close above its 200 day EMA in bull territory. In the process, it formed an 'inside day' as well as a 'hammer' candlestick pattern. Bulls appear to be ready for a fight back.Daily technical indicators are looking oversold. MACD and Slow stochastic are falling deeper inside their respective over..
                 

Nifty chart: a midweek technical update (Oct 10, 2018)

8 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on the first three trading days this week. Their total net selling was worth Rs 41.4 Billion. DIIs were huge net buyers on all three days. Their total net buying was worth Rs 53.9 Billion, as per provisional figures.RBI announced it will inject Rs 120 Billion liquidity into the system through purchase of government bonds with maturity ranging from 2020 to 2030, to meet the festival season demand for funds.The news soothed frayed nerves of bulls. The Rupee recovered from a record low against the US Dollar after six straight days of losses, and triggered a smart short-covering rally - particularly in stocks of NBFCs and banks.The daily bar chart pattern of Nifty shows that the real damage to bullish sentiments occurred on Thu. Oct 4. The index not only dropped below its 200 day EMA into bear territory for the first time since Mar 19 '18, but did so with a downward 'gap' of 89 points (marked by grey rectangle on chart).Such a downwa..
                 

Sensex, Nifty charts (Oct 05, 2018): supports crumble under fierce bear onslaughts

8 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were in a rush to exit - selling on all four days of a holiday-shortened trading week. Their total net selling was worth a huge Rs 95.2 Billion. DIIs were net buyers on all four trading days. Their total net buying was worth Rs 69.3 Billion, as per provisional figures.Nikkei India's Services PMI declined to 50.9 in Sep '18 from 51.5 in Aug '18. Weak demand and stagnant new work led to slower growth. The Composite PMI (Manufacturing+Services) fell to a 4 months low of 51.6 in Sep '18 against 51.9 in Aug '18.The share of private investments in India's infrastructure sector has dropped to a 10 years low of 25% in FY18 - down steeply from a high of 37% in FY08. A plethora of stalled projects and stressed assets dampened investor interest and risk appetite.BSE Sensex index chart patternThe daily bar chart pattern of Sensex dropped below its 200 day EMA into bear territory for the first time since Mar '18. Under a fierce onslaught by bears (read: FIIs), the index plu..
                 

S&P 500 and FTSE 100 charts (Sep 28, 2018): bears trying to make life difficult for bulls

8 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternPossibility of a corrective move towards the lower Bollinger Band was mentioned in last week's post on the daily bar chart pattern of S&P 500. Instead, the index found support at its 20 day SMA (blue dotted line) and consolidated sideways - losing about 16 points (0.5%) on a weekly closing basis.The index is trading well above its rising 50 day and 200 day EMAs in a bull market, but closed lower in 4 out of 5 trading days during the week. Despite trading near a lifetime high, the index is facing difficulty in shaking the bears off.Daily technical indicators are in bullish zones, but showing downward momentum. MACD has slipped below its signal line. RSI has fallen towards its 50% level. Slow stochastic has dropped from its overbought zone. A correction towards the lower Bollinger Band remains a possibility.On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly ..
                 

Gold and Silver charts: bears rule but bulls trying to put up a fight

8 months ago  
Business / Blogs/ Subhankar Blog  
Gold chart patternThe daily bar chart pattern of Gold has been consolidating sideways within a 'rectangle' pattern for the past five weeks - getting support from the 1190 level and facing resistance from the 1220 level.Gold's price has been oscillating about its 20 day EMA, and is trading below its falling 50 day and 200 day EMAs in a bear market. Higher volumes on recent down days indicate that bears remain in charge.A 'rectangle' is an unreliable pattern - sometimes acting like a continuation pattern and sometimes like a reversal pattern. One has to wait for the eventual price breakout before taking any buy/sell decisions.Daily technical indicators are looking bearish to neutral, and not showing any upward momentum. MACD is above its rising signal line in bearish zone. RSI and Slow stochastic are oscillating in their respective neutral zones.On longer term weekly chart (not shown), gold’s price closed well below its three weekly EMAs in long-term bear territory. The 'death ..
                 

WTI and Brent Crude Oil charts: in consolidation mode

9 months ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartFor the past three weeks, the daily bar chart pattern of WTI Crude Oil has been consolidating sideways within a range of 4 points - getting support at 67 but facing resistance at 71.Oil's price closed above its three EMAs in bull territory, but formed a 'long-legged doji' candlestick pattern that indicates indecision among bulls and bears.Daily technical indicators are looking neutral. MACD is above its signal line and moving sideways in neutral zone. RSI is also moving sideways in neutral zone. Slow stochastic is oscillating about its 50% level. The consolidation may continue a little longer.On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are looking neutral to bearish. MACD is falling below its signal line in bullish zone. RSI is moving sideways in neutral zone. Slow stochastic has resumed its down move in bearish zone.Brent Crude Oil chartThe daily bar chart ..
                 

Sensex, Nifty charts (Sep 07, 2018): breakout below trading channels

9 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on Mon., Wed. & Thu. (Sep 3, 5 & 6), but net buyers on the other two days. Their total net selling was worth Rs 7.9 Billion. DIIs were net buyers of equity on Wed., Thu. & Fri. but net sellers on Mon. & Tue. Their total net buying was worth Rs 11.7 Billion, as per provisional figures.During Apr-Jun '18, India's overall balance of payments slipped into deficit for the first time in six quarters due to large Dollar outflows. The deficit stood at US $11.3 Billion against a surplus of $11.4 Billion during Apr-Jun '17.The Current Account Deficit (CAD) rose to US $15.8 Billion (2.4% of GDP) from $15 Billion (2.5% of GDP) in the year ago quarter. Outflows of US $8.1 Billion compared with inflows of $12.5 Billion a year ago led to a sharp depreciation of the Rupee. BSE Sensex index chart patternThe daily bar chart pattern of Sensex broke out below last two months' upward-sloping trading channel on Mon. Sep 3, an..
                 

S&P 500 and FTSE 100 charts (Aug 31, 2018): bulls on top but bears still fighting

9 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe daily bar chart pattern of S&P 500 brushed aside technical headwinds by opening with a small upward 'gap' on Mon. Aug 27, and rose to touch a new high of 2916.50 on Wed. Aug 29.A bit of profit booking dropped the index below the 2900 level, but by end of trade on Fri. Aug 31, the index closed just above 2900 with a weekly gain of 0.9%. The index is trading above its three rising EMAs in a bull market.There can be three possible index moves here onwards - two bullish and one bearish. The index can remain above Monday's small 'gap' and continue upwards. It can correct a bit more to fill the 'gap' and then resume its up move.However, the index can correct to form a downward 'gap' that overlaps Monday's upward 'gap'. In which case, the entire trading above the small 'gap' will form a bearish 'island reversal' pattern. Such a pattern is rare - hence has a low probability of forming.Nevertheless, investors should be aware of the possibility. Daily techn..
                 

WTI and Brent Crude Oil charts: bulls reverse two months long down trends

9 months ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartThe daily bar chart pattern of WTI Crude Oil dropped below the 65 level and stopped just short of testing support from its rising 200 day EMA, before bouncing up and breaking out of a two months long down trend.Oil's price is trading above its three EMAs in a bull market. However, volume support during last week's rally wasn't very strong. For the rally to sustain, oil's price needs to move convincingly above 70.Daily technical indicators are looking bullish. MACD is rising above its signal line in bearish zone. RSI has climbed above its 50% level. Slow stochastic is poised to enter its overbought zone. Some more upside is possible, but beware of lurking bears. On longer term weekly chart (not shown), oil's price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are not showing any upward momentum. MACD is falling below its signal line in bullish zone. RSI has moved above its 50% level after slipping below it. Slow ..
                 

Nifty chart: a midweek technical update (Aug 22, 2018)

10 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on Mon. Aug 20 but net buyers on Tue. Their total net selling was worth Rs 2.3 Billion. DIIs were net buyers of equity on Mon. and Tue. Their total net buying was worth Rs 7.9 Billion, as per provisional figures.The US government has announced a preliminary 50% anti-dumping duty on large diameter welded metal pipes imported from India. Last year's imports totalled US $295 Million. A higher duty of 133% has been imposed on China.In a stern warning, the Finance Ministry has asked CEOs of PSU banks to check all non-performing accounts exceeding Rs 500 Million for fraud, or they could face criminal conspiracy charges.In a holiday-shortened trading week, the daily bar chart pattern of Nifty rose to touch a new lifetime high on Tue. Aug 21, but formed a small 'hanging man' candlestick pattern that has bearish implications.The index is trading well above its three rising EMAs in a bull market. However, the widening distance between the ..
                 

Sensex, Nifty charts (Aug 17, 2018): bull markets climb wall of worries

10 months ago  
Business / Blogs/ Subhankar Blog  
In a holiday-shortened trading week, FIIs were net buyers of equity on Fri. Aug 17, but net sellers on Mon., Tue. and Thu. (Aug 13, 14, 16). Their total net selling was worth Rs 20.3 Billion. DIIs were net buyers of equity on all four trading days. Their total net buying was worth Rs 8.9 Billion, as per provisional figures.Income tax collection in India during FY 2017-18 was at a record Rs 10 Trillion. A record number of 69.2 million tax returns were filed, which was 13.1 million more than those filed in FY 2016-17.There has been a steep decline in India's household savings rate - from 23.6% to 16.3% during fiscals 2012 to 2017, as per a report by India Ratings. The decline was primarily due to shocks from high-value note ban and GST implementation. BSE Sensex index chart patternOn Mon. Aug 13, the daily bar chart pattern of Sensex breached the up trend line (marked '2') drawn from the Jun 28 low. For the rest of the holiday-shortened week, the index made ..
                 

S&P 500 and FTSE 100 charts (Aug 10, 2018): bears trying to spoil the bull party

10 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following remark in last week's post on the daily bar chart pattern of S&P 500 may be worth noting: "A convincing move (i.e. accompanied by strong volume support) above the 'gap' is required for the index to rise to new highs."The downward 'gap' (formed on Jan 30) was completely filled on Mon. Aug 6. The next day, the index opened with an upward 'gap' to touch a high of 2863 - just 10 points short of the lifetime high of Jan 26 - but lacked strong volume support. Bears used the opportunity to stall the rally. On Fri. Aug 10, the index opened with a downward 'gap' and dropped to seek support from its 20 day EMA before closing with a weekly loss of 7 points. Daily technical indicators have corrected overbought conditions, and are showing downward momentum. MACD is about to cross below its signal line. RSI is falling towards its neutral zone. Slow stochastic has dropped from its overbought zone. All three showed negative divergenc..
                 

Gold and Silver charts: struggling in strong bear grips

10 months ago  
Business / Blogs/ Subhankar Blog  
Gold chart patternThe daily bar chart pattern of Gold has been consolidating sideways for the past two weeks. It faced strong resistances from its falling 20 day EMA and the 'Support/Resistance zone 2' (between 1237 & 1248).The 200 day EMA has formed a bearish 'rounding top' pattern. All three EMAs are falling. Gold's price is trading below them in a bear market, but is trying to find support from the zone between 1200 & 1210.Daily technical indicators have corrected oversold conditions, but are not showing any upward momentum. Expect the sideways consolidation to continue a while longer.Bulls may indulge in bottom fishing after a sharp fall. Bears are unlikely to release their strong grip on the chart. On longer term weekly chart (not shown), gold’s price closed well below its three weekly EMAs in long-term bear territory.  Weekly technical indicators are looking bearish and oversold. The 20 week EMA has crossed below the 200 week EMA. The 50 week EMA ..
                 

Nifty chart: a midweek technical update (Aug 01, 2018)

10 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net buyers of equity on Tue. Jul 31, but net sellers on Mon. Jul 30 and today. Their total net buying was worth Rs 2.4 Billion. DIIs were net buyers of equity on Mon. and net sellers during the next two days. Their total net selling was worth Rs 8 Billion, as per provisional figures.At the end of the three-day Monetary Policy Committee meeting, RBI hiked repo rate and reverse repo rate by 25 bps (0.25%) each today. The move was widely expected. Nifty closed just 10 points lower today after four straight days of rallying higher.Revenue collection from GST rose to Rs 965 Billion in Jul '18 from Rs 956 Billion in Jun '18, thanks to increased compliance. However, it fell short of the Rs 1 Trillion per month target set by the government.The daily bar chart pattern of Nifty touched a new high every day for five straight trading days. However, it closed lower today to form a small 'reversal day' bar (higher high, lower close).All three EMAs are ris..
                 

Sensex, Nifty charts (Jul 27, 2018): bulls finally on top after 6 months

10 months ago  
Business / Blogs/ Subhankar Blog  
FIIs decided to join the bull bandwagon, and were net buyers of equity on four out of five trading days last week. Their total net buying was worth Rs 23.6 Billion. DIIs were also net buyers of equity on four out of five trading days. But their net selling on Thu. Jul 26 exceeded their total net buying by Rs 15.7 Billion, as per provisional figures.India's gold imports, which has an adverse impact on Current Account Deficit (CAD), increased 22.3% to US $33.65 Billion in FY 2017-18 against US $27.51 Billion in FY 2016-17 and US $31.7 Billion in FY 2015-16. FDI in the food processing sector rose 24% to US $0.9 Billion in FY 2017-18 against US $0.73 Billion in FY 2016-17 and US $0.5 Billion in FY 2015-16.BSE Sensex index chart patternThe daily bar chart pattern of Sensex rose to touch new intra-day and closing highs on the back of combined FII and DII buying. Though led by large-cap stocks, there were signs of beaten up mid-cap and small-cap stocks joining th..
                 

S&P 500 and FTSE 100 charts (Jul 20, 2018): bulls regaining control but still facing bear resistance

11 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternNote the following comment from last week's post on the daily bar chart pattern of S&P 500: "A convincing move above 2800 is likely to face resistance from the 'downward gap' formed back in Jan '18."The index touched an intra-day high of 2817 on Wed. Jul 18 - well short of the 'GAP' (formed back in Jan '18) - and dropped back towards 2800 to close absolutely flat on a weekly basis.Strong volumes on Thu. & Fri. (Jul 19 & 20) - both down-days - show bears are not ready to yield ground without a fight. All three EMAs are rising, and the index is trading above them in a bull market.Daily MACD and RSI are in bullish zones, but not showing any upward momentum. Slow stochastic is inside its overbought zone and beginning to correct. All three indicators are showing negative divergences by failing to rise higher with the index.Some more correction or consolidation is likely before the index makes another attempt to close the 'GAP'. Trump's trade w..
                 

WTI and Brent Crude Oil charts: bears fight back as supply worries ease

11 months ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartThe following comments were made in the previous post on the daily bar chart pattern of WTI Crude Oil: "The speculative nature of oil's price rise last week is visible on the sliding volume bars and the sharp price rise above the three daily EMAs. Such sudden price spikes are unsustainable."Oil's price formed a 'diamond' reversal pattern that tends to mark a price top - from which a sharp downward breakout occurred on Wed. Jul 11. After a brief upward bounce from the 50 day EMA, oil's price had another sharp fall towards the 'support-resistance zone' (between 66 and 67).Daily technical indicators have corrected overbought conditions, and are showing downward momentum. MACD is falling below its signal line in bullish zone. RSI and Slow stochastic are falling below their respective 50% levels. The rising 200 day EMA suggests that the bull market is alive. However, some more correction is likely.Evidence is mounting that Saudi Arabia is heeding US President Donald ..
                 

Nifty chart: a midweek technical update (Jul 11, 2018)

11 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity during the first two trading days this week, but net buyers today. Their total net buying was worth Rs 0.5 Billion. DIIs were net buyers on all three days. Their total net buying was worth Rs 10.5 Billion, as per provisional figures.The GST Council may consider reduction in tax rates on several goods and services with low revenue implications as part of the tax rationalisation exercise in its next meeting on July 21.Q1 (Jun '18) results season of India Inc. has started with a bang. TCS reported better than expected numbers. IndusInd Bank turned out another solid quarter. Prakash Ind. announced spectacular triple-digit growth in net profit.  After being thwarted by bears a few times, the daily bar chart pattern of Nifty finally broke out above the (purple) down trend line that had dominated the chart for more than 5 months.All three EMAs are rising, and the index is trading above them in a bull market. Time for bull..
                 

Sensex, Nifty charts (Jul 06, 2018): bears stand firm against bull onslaught

11 months ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity during all five trading days last week. Their total net selling was worth Rs 36.6 Billion. DIIs were net sellers on Thu. Jul 5 but net buyers on the other four days. Their total net buying was worth Rs 24.4 Billion, as per provisional figures.Indian engineering exports have grown by nearly 20% during Apr-May '18 even as the US-China tariff war has spread to key trading markets in Europe, Canada and Mexico, as per an EEPC statement.Agri experts and activists from Maharashtra have criticised the government for its 'false and misleading' claim that the MSP of kharif crops have been hiked by 50%.Yes Bank has forecast the recently announced increase in minimum support prices (MSP) for kharif (summer-sown) crops will add 35 bps (0.35%) incrementally to headline inflation during FY 2018-19.BSE Sensex index chart patternThe following remarks were made in last week's post on the daily bar chart pattern of Sensex: "The rising 200 day ..
                 

S&P 500 and FTSE 100 charts (Jun 29, 2018): bulls fail to make any headway against determined bears

11 months ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following remarks appeared in last week's post on the daily bar chart pattern of S&P 500: "Slow stochastic has dived below its 50% level, and may be hinting at a further fall in the index towards its 50 day EMA. As long as 2680 is not breached, the past 3 months' bullish pattern of 'higher tops, higher bottoms' will remain intact."The index started trading on Mon. Jun 25 with a downward 'gap' below its 20 day EMA and closed below its 50 day EMA. For the rest of the week, the index oscillated like a yo-yo - getting support from the 2700 level and facing resistance from 'GAP 2'.On Thu. Jun 28, the index touched an intra-day low of 2692 but closed above 2700. The 2680 level has not been breached. The past 3 months' bullish pattern of 'higher tops, higher bottoms' remains intact. But for how much longer?The past 5 months' trading appears to have formed a large 'symmetrical triangle' pattern. A fall towards the lower edge of the 'triangle' may be on th..
                 

Gold and Silver charts: bears calling the shots again

11 months ago  
Business / Blogs/ Subhankar Blog  
Gold chart patternNote the following comments from the previous post on the daily bar chart pattern of Gold: "Expect some more sideways consolidation before gold's price can either breakout above 1310 or fall towards 1280. A test of support from 1280 seems the more likely near-term possibility."On Thu. Jun 14, gold's price made a desperate attempt to cross above 1310. Resistance from the falling 50 day EMA ensured a close inside the 'Support-Resistance zone' between 1300 and 1310.That was the trigger for bears to attack. On Fri. Jun 15, a sharp correction accompanied by a volume surge dropped gold's price to a close below 1280. A weak effort at a pullback above 1280 was met with more selling by bears.Daily technical indicators are looking oversold. But don't expect a strong fight back by bulls. Any attempt at a pullback will provide another selling opportunity. The 'death cross' of the 50 day EMA below the 200 day EMA has technically confirmed a return to a bear market.On longer term w..
                 

Nifty chart: a midweek technical update (Jun 20, 2018)

one year ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on all three trading days this week. Their total net selling was worth a huge Rs 45.2 Billion. DIIs were net buyers on all three trading days. Their total net buying was worth Rs 29.5 Billion, as per provisional figures.Domestic air passenger traffic grew 16.53% to 11.86 million in May '18 as compared to 10.17 million in May '17, according to data released by DGCA.Overseas funds are pulling out of six major Asian emerging equity markets at a pace unseen since the global financial crisis of 2008 — withdrawing US $19 Billion from India, Indonesia, Philippines, South Korea, Taiwan and Thailand so far this year, according to Bloomberg.The daily bar chart pattern of Nifty shows that bears are putting up strong resistance by defending the down trend line. Following last Wednesday's intra-day breach, the index dropped to seek support from the 'gap' formed on Feb 5.The index bounced up today and closed above its three..
                 

Sensex, Nifty charts (Jun 15, 2018): bulls fail to overcome resistance from bears

one year ago  
Business / Blogs/ Subhankar Blog  
FIIs stepped up their selling. They were net sellers of equity worth a huge Rs 52.9 Billion during the week. DIIs were net buyers of equity worth Rs 40.1 Billion, as per provisional figures. Sensex and Nifty gained about 0.5% each on a weekly closing basis.India's Current Account Deficit (CAD) widened to US $13 Billion (1.9% of GDP) in Q4 (Mar '18), up from US $2.6 Billion (0.4% of GDP) in Q4 (Mar '17), but slightly lower than $13.7 Billion (2.1% of GDP) in Q3 (Dec '17). Higher software exports and remittances were not enough to cover higher crude oil and commodity prices.WPI inflation jumped to 4.43% in May '18 - a 14 months high - against 2.26% in May '17 and 3.6% in Apr '18 - largely on account of higher fuel, fruit and vegetable prices.BSE Sensex index chart patternThe following remarks were made in last week's post on the daily bar chart pattern of Sensex: "Bears are not giving up just yet. A fall below the 'rising wedge' may lead to a test of support from the 'Supp..
                 

S&P 500 and FTSE 100 charts (Jun 08, 2018): bulls gaining ground

one year ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following remarks were made in last week's post on the daily bar chart pattern of S&P 500: "Bulls may make another attempt to fill 'GAP 2' - either partly or completely. Their previous two attempts had failed. May be it will be 'third time lucky'? Even if it is, the upper edge of 'GAP 2' can provide tougher resistance."Bulls did make another attempt to fill 'GAP 2' and were 'third time lucky' by completely filling it. On Wed. Jun 6, the index overcame resistance from the upper edge of 'GAP 2' and closed above the 'Flag' pattern.Next day, the index pulled back to the top of the 'Flag' after facing resistance from the 2780 level - giving bulls a chance to 'buy the dip'. On Fri. Jun 8, the index bounced up to close just below 2780 with a 1.6% weekly gain.Daily technical indicators are looking bullish and a bit overbought. MACD has entered its overbought zone. RSI is trying to rise towards its overbought zone. Slow stochastic is inside its overbo..
                 

WTI and Brent Crude Oil charts: bear onslaught forces bull retreat

one year ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartThe following comments appeared in the previous post on the daily bar chart pattern of WTI Crude Oil: "Daily technical indicators are looking overbought and showing negative divergences by failing to touch new highs with oil's price. Falling volumes during the last leg of the rally is also a bearish sign... some correction or consolidation may be on the cards."Oil's price touched an intra-day high of 72.83 on May 22, but formed a 'reversal day' bar (higher high, lower close) that often marks an intermediate top. A combination of profit booking and bear selling triggered a sharp correction below the 20 day and 50 day EMAs.A brief upward bounce from the 'Support/Resistance zone' (between 66 & 67) and a close above the 50 day EMA on May 30 was met with more bear selling. Oil's price closed below the 'Support/Resistance zone' after 7 weeks, but above its 200 day EMA in bull territory.Daily technical indicators are showing downward momentum in bearish zones. Slow..
                 

Gold and Silver charts: ain't going nowhere

one year ago  
Business / Blogs/ Subhankar Blog  
Gold chart patternA 6 weeks long rally in the US Dollar index seems to have severely dampened bullish enthusiasm on the daily bar chart pattern of Gold. After receiving some support from its 200 day EMA inside the 'support zone' and rallying briefly to test resistance from its falling 50 day EMA, gold's price fell below 1300 on May 15 - for the first time since the beginning of the year - with a volume surge.On May 21, gold's price touched an intra-day low of 1282 - losing almost 90 points from its Apr '18 top - but formed a 'hammer' candlestick pattern that triggered a pullback inside the 'support zone'.The merged 20 day and 200 day EMAs are providing resistance to the pullback rally. Daily technical indicators have corrected oversold conditions, but remain in bearish zones.The breakout below the 'support zone' is a clear hint from bears that they will continue to 'sell on every rise' to retain their advantage.On longer term weekly chart (not shown), gold’s price closed..
                 

Nifty chart: a midweek technical update (May 23, 2018)

one year ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity during the first three trading days this week. Their total net selling was worth Rs 24.6 Billion. DIIs were net buyers of equity on all three days. Their total net buying was worth Rs 34.8 Billion, as per provisional figures.The fear of losing control over their companies has led to defaulting promoters of 2100 companies settle their dues of around Rs 830 Billion before action was initiated under the newly-enacted Insolvency & Bankruptcy Code (IBC).During FY 2017-18, India's net direct tax collections have crossed Rs 10 Trillion mark, which is 18% higher than the collections in FY 2016-17.The following was the concluding remark in last week's technical update on the daily bar chart pattern of Nifty: "A fall below 10602 can lead to a deeper correction."The index dropped below its 20 day EMA, and closed at 10596 on Fri. May 18. That encouraged bears to continue their rampage.The index fell below its 50 day EMA on Mon. May 21, only to pullback to its me..
                 

Sensex, Nifty charts (May 18, 2018): bears on the warpath

one year ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on four of the five trading days. Their total net selling during the week was worth Rs 15 Billion. DIIs were net buyers of equity on all five trading days. Their net buying was worth Rs 20.3 Billion, as per provisional figures.Sensex and Nifty both lost 1.9% on a weekly closing basis. What can be more worrisome for bulls is that both indices closed below the downward 'gaps' formed on Feb 5.India's import bill could bloat by $25-50 billion in the current financial year due to spike in crude oil prices, but the government sees no reason for panic. However, a report by Goldman Sachs says that India's Current Account Deficit (CAD) may increase to 2.4% of GDP in FY 2018-19.BSE Sensex index chart patternNegative divergences visible last week on overbought technical indicators on the daily bar chart pattern of Sensex had hinted at a likely corrective move.A hung Karnataka assembly provided bears with just the trigger they were looking for. The index touched an ..
                 

S&P 500 and FTSE 100 charts (May 11, 2018): bulls regaining lost ground

one year ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternNote the following comment in last week's post on the daily bar chart pattern of S&P 500: "Daily technical indicators are looking bearish to neutral, but showing slight upward momentum that is hinting at some more upside." The index corrected a bit on Tue. May 8 but bounced up after finding good support from its 20 day EMA. On Thu. May 10, the index crossed above the (green) down trend line with an upward 'gap' and closed above 'GAP 3' (refer last week's post).The bulls still have a lot of work left, as 'GAP 2' is likely to provide resistance. Also, the index appears to be consolidating within a bearish 'Flag' pattern whose upper edge can also provide resistance.All three EMAs are rising, and the index is trading above them in a bull market. However, sliding volumes during last week's rally should be a concern for bulls - more so because recent down-day volumes have been quite high. Daily technical indicators are looking bullish and sho..
                 

WTI and Brent Crude Oil charts: bulls taking complete control

one year ago  
Business / Blogs/ Subhankar Blog  
WTI Crude Oil chartOverbought conditions visible on technical indicators had led to the following comment in the previous post on the daily bar chart pattern of WTI Crude Oil: "Some consolidation can be expected around current prices before oil's price can move higher."For the next 8 trading sessions, oil's price consolidated sideways as expected. It received strong support from its rising 20 day EMA and the 'support/resistance zone' between 66 & 67 before breaking out past 70.The three EMAs are rising, and oil's price is trading above them in a bull market. However, the widening gap between the 20 day EMA and the 200 day EMA is a sign of an overbought condition. Daily technical indicators are looking overbought and showing upward momentum. Some more upside is possible. However, a correction or consolidation may be around the corner. On longer term weekly chart (not shown), oil's price closed above its three rising weekly EMAs. The 50 week EMA is ..
                 

Nifty chart: a midweek technical update (May 02, 2018)

one year ago  
Business / Blogs/ Subhankar Blog  
For the month of April '18, FIIs were net sellers of equity worth Rs 99.6 Billion. DIIs were net buyers of equity worth Rs 85.1 Billion, as per provisional figures. Nifty gained 6.2% on a monthly closing basis.Many car makers had double-digit YoY growth in sales during April '18. Tata Motors (34%), M&M (22%), Maruti Suzuki (14%) led from the front. Hyundai (4.4%), Honda Cars (-35%), Ford (-40%) were the laggards. Nikkei India's Manufacturing PMI rose to 51.6 in Apr '18 against 51.0 in Mar '18 (a number >50 indicates growth). However, export orders slipped to a 5-month low.On Mon. Apr 30, the counter-trend rally on the daily bar chart pattern of Nifty had completely filled the 33 points downward 'gap' formed on Feb 5. After a day's holiday, the index rose further to touch an intra-day high of 10785 today. However, it corrected and dropped below the 'gap' to an intra-day low of 10690 before recovering to close at 10718 - right in the middle of the 'gap' - and f..
                 

Sensex, Nifty charts (Apr 27, 2018): poised at crossroads after filling downward gaps

one year ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on all five trading days. Their total net selling during the week was worth Rs 30.6 Billion. DIIs were net buyers of equity on all five trading days. Their net buying was worth Rs 26.5 Billion, as per provisional figures.Counter-trend rallies on Sensex and Nifty charts have filled downward 'gaps' formed on Feb 5. Sensex gained 1.6% and Nifty gained 1.2% on a weekly closing basis - thanks to sharp gains in heavyweight TCS and RIL stocks.India's economy faces a wider trade deficit, a worsening of stretched government finances, and slower economic growth if oil prices remain stubborn at the current level. That would challenge policy makers trying to strengthen the economy in time for elections next year.BSE Sensex index chart patternThe daily bar chart pattern of Sensex has reached an important technical crossroad. By touching an intra-day high of 35065 on Fri. Apr 27, the index completely filled the 132 points downward 'gap' formed on Feb 5.The weekly..
                 

S&P 500 and FTSE 100 charts (Apr 20, 2018): bulls fight back but bears retain upper hand

one year ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following comments appeared in last week's post on the daily bar chart pattern of S&P 500: "The first and most critical task for bulls will be to cover/fill 'GAP 3' and 'GAP 2'. Even if both 'gaps' are filled the index can be expected to resume its correction."Bulls did manage to completely fill 'Gap 3' during last week's trading, but faced resistance from the 2710 level. Bears decided to 'sell on rise'. The index dropped below its 20 day and 50 day EMAs to touch an intra-day low of 2660 on Fri. Apr 20, before closing 10 points higher at its 20 day EMA.The index appears to have formed a bearish 'rising wedge' pattern (labelled 'Rising Wedge 2'), from which the likely break out is downwards. Strong volumes on Thu. & Fri. are hinting at such a downward break out.Note that the index had earlier formed 'Rising Wedge 1' during Feb-Mar '18 from which it broke out downwards with a 'gap' (labelled 'Gap 2) on Mar 19. Filling 'Gap 2' should be the next ..
                 

Gold and Silver charts: sideways consolidations continue

one year ago  
Business / Blogs/ Subhankar Blog  
Gold chart patternThe daily bar chart pattern of Gold continued its sideways consolidation between the 'Support zone' (1300-1310) and the 'Resistance zone' (1360-1370). The consolidation has entered its 4th month.The entire consolidation has occurred above the rising 200 day EMA in a bull market. So, the logical break out from the consolidation should be upwards. But markets don't always follow or understand logic - at least in the near term.Note that gold's price made a futile attempt to cross above the 'resistance zone' on Wed. Apr 11, and dropped to close at 1360 (lower edge of the 'resistance zone'). The accompanying volume surge may be a sign of 'buying climax'.Gold's price corrected below its rising 20 day EMA intra-day on Fri. Apr 13, but bounced up to close above its three rising EMAs in bull territory.Daily technical indicators are giving conflicting signals - which is often the case during periods of consolidation. MACD is showing slight upward momentum in bullish zone. RSI i..
                 

Nifty chart: a midweek technical update (Apr 11, 2018)

one year ago  
Business / Blogs/ Subhankar Blog  
FIIs were net sellers of equity on Mon. & Tue. (Apr 9 & 10) but net buyers today. Their total net selling was worth Rs 16.2 Billion. DIIs were net buyers of equity on all three days. Their total net buying was worth Rs 11.2 Billion, as per provisional figures.Nifty managed to gain 85 points (0.8%), but is facing resistance from its 50 day SMA (at 10425) and has formed a small 'hanging man' candlestick pattern that can end the recent rally from the low of 9952 (touched on Mar 23).India's 'Goldilocks economy' is getting derailed by rising oil prices and major scams in PSU and Private banks. Expectations of significant improvement in India Inc's Q4 (Mar '18) results may be belied.The daily bar chart pattern of Nifty broke out convincingly above the downward-sloping channel (refer last week's update) and the 20 day EMA on Thu. Apr 5.The index continued its rally above the 50 day EMA and the resistance level of 10400 into bull territory. However, the rally from the Mar 23 low h..
                 

Sensex, Nifty charts (Apr 06, 2018): bulls fight back

one year ago  
Business / Blogs/ Subhankar Blog  
FIIs have turned bears again. Their net selling during the first week of trading in FY 18-19 was worth Rs 13.6 Billion. DIIs were net buyers of equity worth Rs 26.6 Billion, as per provisional figures.Both Sensex and Nifty broke out above downward-sloping channels within which they were correcting during the previous 6 weeks. Sensex gained 2% and Nifty gained 2.1% on a weekly closing basis.Nikkei India's Services PMI improved from 47.8 in Feb '18 to 50.3 in Mar '18. The Composite PMI (Manufacturing + Services) rose from 49.7 in Feb '18 to 50.8 in Mar '18. A number >50 indicates expansion.BSE Sensex index chart patternAfter a failed attempt to cross above the upper edge of the downward-sloping channel, followed by a drop to seek support from the 200 day EMA on Wed. Apr 4, the daily bar chart pattern of Sensex overcame resistance from its 20 day EMA and broke out above the channel on Thu. Apr 5.RBI's status quo on interest rates helped the bullish cause, but there is no need..
                 

S&P 500 and FTSE 100 charts (Mar 29, 2018): bulls trying to resist bear dominance

one year ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following remarks were made in last week's post on the daily bar chart pattern of S&P 500: "A technical bounce is a possibility. However, bears are likely to adopt a 'sell on rise' approach to maintain dominance."After closing below its 200 day EMA for the first time since Nov '16, the index bounced up as expected on Mon. Mar 26 and touched the week's high of 2675 on Tue. Mar 27.Bears used the opportunity to sell. The index tested support from its 200 day EMA on the next two days, and then bounced up on Thu. Mar 29 - probably on short-covering before the long Easter weekend - to close with a 2% weekly gain.Note that volume bars on two down-days (Tue. & Wed.) were higher. Bears are unlikely to give up their dominance easily - even though the index managed to close above its 200 day EMA in bull territory through the week.Daily technical indicators are in bearish zones, and not showing any upward momentum. MACD is below its falling signal line in..
                 

S&P 500 and FTSE 100 charts (Mar 23, 2018): bears taking charge

one year ago  
Business / Blogs/ Subhankar Blog  
S&P 500 index chart patternThe following comments from last week's post on the daily bar chart pattern of S&P 500 are worth noting:"The index touched an intra-day low of 2741 on Thu. Mar 15, but bounced up to close just above the 2750 level on Fri. Mar 16 - forming an 'inverted hammer' candlestick. The accompanying volume surge is often a sign of trend reversal."Fears of a trade war with China gave an extra impetus to bears. The index opened trading with a downward 'gap' on Mon. Mar 19 and dropped sharply below its 20 day and 50 day EMAs. That was a signal for bulls to run for cover.Two days of sideways consolidation was followed by another sharp fall with a downward 'gap' on Thu. Mar 22. The index closed below its previous (Mar 2) low of 2647 - hinting that worse was to follow.It did. On Fri. Mar 23, the index fell steeply with strong accompanying volume and closed below its rising 200 day EMA for the first time since Nov '16. The large 'symmetrical triangle' drawn last w..