On Friday, the Dow Jones Industrial Average (DJIA) bounced from its 200 day EMA.

I expect both Nifty and Sensex to move up in the short term.

My targets would be the 50 day EMA for both the DJIA and the Indian indices.

Those who want to lighten their positions, should keep the 50 day EMA in mind. It is going to prove a strong resistance.

Currently the 50 day EMAs are:

DJIA - 13393 (314 points above CMP - 13079)
Nifty - 4345 (237 points above CMP - 4108)
Sensex - 14847 (705 points above CMP - 14142)

The EMA will keep moving down with each passing day. The green ribbon and arrow indicate the 50 day EMA.

The red ribbon is the 200 day EMA. It is one of the most important resistance and support in technical analysis. Notice how it has acted as a support for the indices.

================================================== ================

Dow Jones Industrial Average:




================================================== ================

NSE Nifty:



================================================== ================

BSE Sensex:

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

DJIA touched the 50 day EMA on Friday and the Indian indices touched the 50 day EMA today.

Now this is an important level. Keep a watch on US markets tonight.

50 day EMA - DJIA - 13361.
50 day EMA - NSE NIFTY - 4309.
50 day EMA - BSE SENSEX - 14744.

Indian markets have risen on low volumes and thus caution is advised.

Dow Jones Industrial Average -



BSE SENSEX -



NSE NIFTY - The NIFTY chart's width is the volume of trading. Note that the rise has been on thin volumes compared to the fall. This is a bearish sign.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+