S&P 500 - USA long term trend chart

S&P 500 (USA) in quarterly period time frame (Log scale) shows very clearly that the index has entered the long term upward sloping channel which it had broken out of in the 90s and peaked out in 2000. The 2000 peak has not been crossed in the bull market which terminated in 2007. 2008 bought the index crashing within the channel and a bottom was formed at 666. From a quarterly perspective the index has to close above 1100 decisively to get a sustainable uptrend. In case of 666 being broken decisively, 450 is possible which is at the bottom of the long term channel.

Nifty at important barrier!

Nifty zoomed up 20% to touch an important trend line from below. This trendline was the support for the entire bull market from 2002 to 2008. After forming a trough, Nifty zoomed up on Monday 18th May, 2009 and touched this trendline. Now it will require a lot of money to push Nifty above this trendline. Nifty can go higher as the trendline is trending higher but failure to close above this trendline and sustaining over it will be the key. Markets are tremendoulsy overobought and an investor or trader should wait for markets to stabilise and volatility to decrease before taking a further call. As for me, I am selling today now that markets are out of the "frozen zone"

The image is of Nifty in weekly time frame from 2002 to 18th May, 2009.

I-flex for die-hard bulls only!

I-flex has broken out of a bullish flag pattern on good volumes. Bulls can take positions with targets of 1660 and 1800 (the two overhead resistance zones). Overall I think markets are looking tired and a correction is due within the next few trading sessions. So appropriate stop losses should be applied to all positions.

Hero leads from the front!

Hero Honda has broken out of a sideways range in weekly charts after almost 2 years. All time highs look sure to be tested and broken. Pullbacks can be used to accumulate.

Mcleod Russel is brewing!

Mcleod Russel (BSE code: 532654) is breaking out on strong volumes in the weekly charts. The stock is in an intermediate uptrend and can challenge all time highs around 160. Pullbacks should be used to enter into the stock.

Reliance Ind. at key resistance zone

Reliance Ind. has reached a key resistance zone @ 2650. It has failed at this level quite a few times after the crash in january. Positions can be taken by using options. For bearish strategies, puts can be bought and if breakout takes place then call options can be taken.

Hind.Oil Exploration reaches 1st target of 148