Nifty :: Made an Single Top formation on daily chart.. Its amazing that in last extended C of c wave made an impulse 5wave structure (may be 3rd if break 5110 after small correction.. Always prepare/ready for alternate scenario in stock market and time to time revise S.L in profit) .. Time and Price both extended at last top.. And that’s why we mark as Single Top formation in daily chart, if it is, then Nifty break 4900 easily in coming days and after it required lower top lower bottom for conformation of Single Top formation of intermediate correction.. Nifty already achieved extended bearish Ending Diagonal target (in our last Ending Diagonal Elliott wave post we told max target 5150).. Midterm investor slightly revise buying stop loss at 4959 or maximum 4900.. Our strategy for 5th Oct. Sell at high (S.L 5110) buy in deep (S.L 4960).. Resistance for up move at 5110/5133/5152/5178.. Supports at 5037/5028/5000/4960/4921/4900..
HI All,
I will be writing and compiling about few Technical Indicator i follow so that people can also use it and come up with there own Interpretation.
Moving Average Convergence-Divergence
(MACD) was originally constructed by Gerald Appel an analyst in New York. Originally designed for analysis of stock trends, it is now widely used in many markets.
MACD is constructed by making an average of the difference between two moving averages. The difference of the original two moving averages and the moving average of the difference can be plotted as two lines, one fast and one slow
How is it Use?
MACD measures the difference between two Exponential Moving Averages (EMAs). A positive MACD indicates that the 12-day EMA is trading above the 26-day EMA. A negative MACD indicates that the 12-day EMA is trading below the 26-day EMA. If MACD is positive and rising, then the gap between the 12-day EMA and the 26-day EMA is widening. This indicates that the rate-of-change of the faster moving average is higher than the rate-of-change for the slower moving average. Positive momentum is increasing, indicating a bullish period for the price plot. If MACD is negative and declining further, then the negative gap between the faster moving average (blue) and the slower moving average (red) is expanding. Downward momentum is accelerating, indicating a bearish period of trading. MACD centerline crossovers occur when the faster moving average crosses the slower moving average.
MACD Bullish Signals
MACD generates bullish signals from three main sources:
1.Positive Divergence
2.Bullish Centerline Crossover
1.Positive Divergence:A Positive Divergence occurs when MACD begins to advance and the security is still in a downtrend and makes a lower reaction low. MACD can either form as a series of higher Lows or a second Low that is higher than the previous Low. Positive Divergences are probably the least common of the three signals, but are usually the most reliable, and lead to the biggest moves.
2.Bullish Centerline Crossover:A Bullish Centerline Crossover occurs when MACD moves above the zero line and into positive territory. This is a clear indication that momentum has changed from negative to positive, or from bearish to bullish. After a Positive Divergence and Bullish Centerline Crossover, the Bullish Centerline Crossover can act as a confirmation signal. Of the three signals, moving average crossover are probably the second most common signals.
MACD generates bearish signals from three main sources. These signals are mirror reflections of the bullish signals:
1.Negative Divergence
2. Bearish Centerline Crossover
I will be writing and compiling about few Technical Indicator i follow so that people can also use it and come up with there own Interpretation.
Moving Average Convergence-Divergence
(MACD) was originally constructed by Gerald Appel an analyst in New York. Originally designed for analysis of stock trends, it is now widely used in many markets.
MACD is constructed by making an average of the difference between two moving averages. The difference of the original two moving averages and the moving average of the difference can be plotted as two lines, one fast and one slow
How is it Use?
MACD measures the difference between two Exponential Moving Averages (EMAs). A positive MACD indicates that the 12-day EMA is trading above the 26-day EMA. A negative MACD indicates that the 12-day EMA is trading below the 26-day EMA. If MACD is positive and rising, then the gap between the 12-day EMA and the 26-day EMA is widening. This indicates that the rate-of-change of the faster moving average is higher than the rate-of-change for the slower moving average. Positive momentum is increasing, indicating a bullish period for the price plot. If MACD is negative and declining further, then the negative gap between the faster moving average (blue) and the slower moving average (red) is expanding. Downward momentum is accelerating, indicating a bearish period of trading. MACD centerline crossovers occur when the faster moving average crosses the slower moving average.
MACD Bullish Signals
MACD generates bullish signals from three main sources:
1.Positive Divergence
2.Bullish Centerline Crossover
1.Positive Divergence:A Positive Divergence occurs when MACD begins to advance and the security is still in a downtrend and makes a lower reaction low. MACD can either form as a series of higher Lows or a second Low that is higher than the previous Low. Positive Divergences are probably the least common of the three signals, but are usually the most reliable, and lead to the biggest moves.
2.Bullish Centerline Crossover:A Bullish Centerline Crossover occurs when MACD moves above the zero line and into positive territory. This is a clear indication that momentum has changed from negative to positive, or from bearish to bullish. After a Positive Divergence and Bullish Centerline Crossover, the Bullish Centerline Crossover can act as a confirmation signal. Of the three signals, moving average crossover are probably the second most common signals.
MACD generates bearish signals from three main sources. These signals are mirror reflections of the bullish signals:
1.Negative Divergence
2. Bearish Centerline Crossover
Weekly Technical View by Tanmay G Purohit:
Nifty (5083) closed 2.51% up week on week after both Nifty and Sensex have closed above psychological levels of 5000 and 17000 respectively. India's annual June-September monsoon rains, vital for farm and overall economic growth in Asia's third-biggest economy, were 23 percent below average in 2009, the worst since 1972, government data showed on Thursday. But because of lower rains this season, Inflation has inched up towards 0.83% as of September 19 and analysts expect the rate of price rise to cross 7% by this fiscal end. India's finance minister Pranab Mukherjee warned "there is inflationary potentiality and inflation may go up further. When it goes up it is a matter of concern.". India's exports fell by annual 19.4% in August for the 11th straight month, but exporters bleeding under the global recession foresee better times around Christmas. But amid hopes of economic revival and worries of rising unemployment, the US economy has been in recession for 23 months, one of the longest periods since the 1930s Great Depression. Auto Sales for the month of Sept 2009 have hit record high after GM, Hyundai, Honda and Ford sold record number of vehicles on the back of festive season and banks flooded with deposits provided easier credit norms. The director general of hydrocarbons has blamed the fight over gas supplies between the Ambani brothers for the poor response to 70 oil, gas and coal-bed methane blocks on offer. “Fewer numbers of bids may come in for Nelp-VIII due to negative publicity because of the fight between two corporate giants,” said V K Sibal, director general of hydrocarbons indicating the transparency of Indian firms is at stake owing to the Ambani Fued. Nifty crucial support exists around 4880-4900 and as long as that is sustained, one should not worry much about trend reversal. But risk-reward is still not favourable and traders would enjoy this market, investors need to be cautious and 60-70% cash may be kept aside for future investment picks. NTPC and GAIL look good and one can accumulate these stocks for long-term gains. Caution advised if 4880 is broken.Supp 5015/4955/4880 Res 5125/5188/5296
SCRIP = IDFC INFRA. DEVFIN. (BSE),
SCRIP CODE = 532659,
PREVIOUS CLOSE = 154.65,
STOP LOSS = 148,
TARGET = 224.
FOR INTRADAY MOVEMENT OF THE STOCKFILTER PLEASE Click Here!
(OR CLICK THE LINK ABOVE LIVE SENSEX WATCH.)
CHART AS ON 1-10-2009THE STOCHASTICS, RSI AND MACD HAVE GIVEN A POSITIVE CROSSOVER.
TECHNICAL ANALYSIS AND PORTFOLIO MANAGEMENT INDICATE THIS COUNTER GOOD FOR A MEDIUM TO LONG TERM RANGE.
STRICTLY MAINTAIN AND FOLLOW THE STOP LOSS.
- India’s Remittance is one of the highest in the world as many Indian are employed globally and with Crude prices unstable and labor demand lower in Gulf region and Major developed world unemployed rates are very high.
- Social unrest is becoming lager in developed world as Indian saving habit and hard work has made locals attack Indian increasing security concern. Australia has become a good example.
- Unemployment and under-employment is a problem globally with U.S payroll data saying workweek is33hours so any improvement in demand will improve workweek first and Fed has expressed the same view.
- International trade hasn’t picked up as people refusing to spend in developed countries and for the past 11month Indian trade has been negative and Baltic Index a gauge for global trade also indicate weakness.
- India is also seeing social unrest due to job security consequent Pilot strike, HR murder in Pricol, Flash strike in Cummins, MRF, Hyundai and JKtyre can be few flash points. Many presently employed are afraid to apply a leave due to fear of losing job, making the strain beyond limit.
The total non-farm payroll accounts for approximately 80% of the workers who produce the entire gross domestic product of the United States. The non-farm payroll statistic is reported monthly, on the first Friday of the month, and is used to assist government policy makers and economists determine the current state of the economy and predict future levels of economic activity. Non-farm payroll data, which represents the total number of paid U.S. workers of any business, excluding general government employees, private household employees, employees of nonprofit organizations that provide assistance to individuals, and farm employees.
The official unemployment rate is 9.8% in September from 9.7% in August, highest unemployment rate since June 1983.
The longest stretch of job losses since the 1930s probably continued September, U.S. nonfarm payrolls fell by 2, 63,000 in the month marking the 21st consecutive month of falling employment. Unemployment rate rises to 9.8%, a 26-year high. Since the recession began in December 2007, 7.2 million jobs have been lost and the unemployment rate has doubled.
Federal Reserve Chairman Ben Bernanke in congressional testimony on Thursday said,” Even with relatively decent economic growth of about 3% next year, the unemployment rate wouldn't come down very much”.
An alternative gauge of unemployment, which includes discouraged workers and those with part-time employment, rose from 16.8% to 17%, the highest in the 15-year history of the data. The average workweek dropped back to an all-time low of 33 hours.
The seasonally adjusted jobless rate for the Euro zone inched up to 9.6% in August from 9.5% in July, Eurostat said Thursday. That was the highest rate since March 1999. It also matched economists' expectations. A year ago, the rate of unemployment was 7.6% in August. There were 15.165 million people out of work in the euro area in August. The jobless rate for EU27 stood at 9.1% in August, up from 9% in July. That was the highest rate since March 2004.
Indian Market are defying all gravity while Global markets has started it correction and many market now trading below 1 to 2months low, timing a correction is never possible correction doesn’t come saying, when it comes and it needs just few days to erode wealth and the reason is never understood when it happens one can only do post analysis. Investor should always adjust the investment according to the situation now time to be in 70% cash and hold only 30% in stock.
Dow suffers seventh decline in eight sessions. U.S. stocks fell, capping the market’s first back-to-back weekly declines since July, as a bigger-than-estimated loss of jobs and a drop in factory orders spurred concern the economy is struggling to recover.
Know about FDIC.
Warren, Mich.-based Warren Bank and Spring Grove, Minn.-based Jennings State Bank were 2 banks closed by regulators Friday, bringing the number of U.S. bank failures this year to 97 due to the lingering credit crunch.
http://www.fdic.gov The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for up to $250,000 (through December 31, 2013); by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails.
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