Potential HUGE INVERSE HnS in dollar

This is not the chart which one should look and trade the  short term markets . But it is definitely one of the picture one should keep in mind.  Is the dollar currently forming the RIGHT shoulder of what could be a POTENTIAL HUGE INVERSE Head and Shoulders in the dollar.

Currently unable to work with a good charting software. So marked the Shoulders and head with triangles. I think its clear  enough.

One of my earlier post showed a high enough target for a dollar rally.

http://markettechnicals-jonak.blogspot.com/2011/08/dollar-poised-for-massive-rally.html

Dollar HITS CHANNEL support

Some might remember the channel that I had pasted on this site. Well with the global liquidity swap by the central banks in full force, the dollar has hit the lower support of that channel. Tomorrow the nifty is sure to open GAP UP. Bu the I think it would be good to take rofits instantly , as long as the dollar is resting on that support line . Because that is a good support and the dollar might bounce from there . Which will again push the stocks down from their highs.

Nifty upmove ahead.

I have been looking like a HAWK at the dollar charts . Without a weakness in the dollar , Nifty WILL NOT RALLY .  The dollar has been going very strong .  But now its looking like a TOPPING pattern is emerging and a break of bothe the HnS neckline and the trend line support is due. And that wil  help the nifty travel higher from the cirrent levels. I am expecting a minimum target of 4960 . It may go higher than that  .

Nifty --update:28-11-2011

So the 1st 2 targets have been achieved . Nifty looks like it is heading higher towards 4900. But at this point I see a good resistance at 4820. One might buy a small PUT . For a target of 4750.

Good BUYS

Just took a look at 2 stocks. One of them Appolo Tyres. I knew that it would go higher , when it broke that triangle with good volume.
But forgot to post earlier.

But I think it still has some steam to go higher. Target 70 on this one.

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Next one is the Shiv Vani. Good bullish flag like formation . Target 238-240 above 215.

Mphasis charts

Mphasis was looking bad. It has broken that rectangular pattern with HUGE volumes .

I was watching for sometime . It has now a very good chance of hitting 150 levels.

DEFTY divergence

Some divergence is seen . May be a nice pull back ahead.

DOLLAR charts

We take a look at crucial dollar charts . The inverse relation of equities to the DOLLAR is almost 100%. The dollar has hit another POTENTIAL parallel channel resistance line . I expect it to move down from these levels . Also divergence in indicators seen.

The  level has been hitting for 3 times now.

You can see that the SnP just managed to break inside that TRIANGLE . That because of the last bearish candle in the previous chart .

I expect a down move in the dollar now. And that should take stocks higher from these levels

Dollar in a channel.

Dollar has found a workable channel . I expect another move UP , if not to the previous High , but atleast to 77.83 area. Then it could form a DIAMOND patter . For the next move down . Lets see. If dollar goes up , NIFTY goes down . 

DEFTY chart

We got this DEFTY CHART here. The DEFTY waves are more CLEAR than the NIFTY .  We can see  a good WOLFE WAVE in the DEFTY . Targets much lower than current levels. So this down move in NIFTY may not be over.





Nifty and Dollar

Sadly no charts atleast for now . But I am looking at live charts which cant be saved and uploaded here.
The dollar is swinging inside a channel which looks more like a BULL FLAG . It has hit the upper channel line 3 times. And the lower channel line 2 times. . All the more probability that dollar wil come down to hit the lower channel line which will take world markets higher. Nifty will target 5360. Dont know how high it may go.  But if the BULL FLAG interpretation is correct then you knwo what happens after BULL FLAG completes  ; DOLLAR rises and stocks go down . Bought some CALLs  today.

Have fun trading.

A few SHORT candidates.

 TVS Motors chart .The first chart shows  exact retracement to golden ration 61.8%

The 2nd chart shows that the price is channeling  which could be interpreted as a BEAR FLAG .

We also have a wolfe wave target of around 55. .

Elliot wave wise we can say that B completed and C wave is starting now . the RSI is at overbought levels.  This one looks like a definite SELL at the present levels.
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PVR charts  below . Channeling and knocking at resistance levels  . Also can be said to be a BEAR FLAG .  Divergence seen .  Wolfe Wave targets below 100.

Mahindra & Mahindra . 5 waves looks completed. Wave 5 stops exactly at 161.8% of wave 1 .   Flat 2nd wave correction . diagonal triangle in the 4th . Elliot wave doesnt get better than this .

Nifty --a little bounce

Very short term oversold. Filled the bigger GAP . But we left a little GAP at the top which gets filled at 5327.
So expecting a bounce atleast till that level. Not shorting at these levels. Important FED meeting coming up . Better wait till tommorow . But many analyst on the blog are primarily BEARISH . They are expecting a bounce to complete a smaller HnS   and will also complete a right shoulder of larger HnS.