Dow Jones May Weaken Further

Dow Jones Industrial Average:

Dow Jones Intraday ChartDow Jones Industrial Average after the bull run, did not show any significant move as forecasted in our earlier post. The index remained weak and is hovering in between the new L1 and L2 Camarilla levels.Also there are no Wolfe Wave patters to be seen on the charts. Lack of momentum and a sell signal portrays weakness on the intraday timeframe.It would be wiser though to go short once the Gann trendlines are broken as shown in our charts. We may also expect a bounce from the Gann channel lines.


Dow Jones EOD ChartOn the EOD timeframe, the index is seemingly bullish as mentioned in our  earlier post . However, Wolfe Wave patterns are not seen on the charts. A buy signal hints a bullish move but it is also to be noted that a major H3 resistance level exists right above the current price levels for the index. As per Gann studies, we are to expect a trend reversal soon and hence traders must be cautious about going long on the index. As mentioned earlier, days  27th April 2012 and  2nd May 2012 , or within 27 to 30 trading days counted from the 2nd of April, 2012 are expected to initiate a change in trend.

EURUSD:

EURUSD EOD ChartThe EURUSD charts have not shown any significant change since our last post. The pair remains within the L3 and L4 levels and is under the influence of a buy signal. As already predicted, the beginning of May 2012 may bring about a bullish change in trend. The absence of Wolfe Waves also makes any good moves unpredictable. A trend needs to be established in order to make further calculations into the future.


Gold:

Gold EOD ChartThe metal remained bullish and did make good gains in the last few trading sessions. Though Wolfe Waves are still absent on the charts, a buy signal and a penetration above the monthly H4 Camarilla level makes way for further positive moves in the near future. As per Gann studies, we may expect the yellow metal to keep gaining in price till the end of May 2012. Traders may remain long and for those who invest in the metal on dips, this is the time to wait for the next dip.


S&P CNX Nifty:

Nifty EOD ChartThe sudden jump in the last bar as seen on EOD charts is justified by an important Gann date. 46 trading days from the 22nd of February 2012 fell on this day and hence the index did show some positive movement due to the significance of this date. However, a change towards a bullish trend can only be expected near the 7th of May, 2012. Wolfe Wave patterns are not yet prominent on the EOD charts. A sell signal and the position of the present price levels with respect to monthly Camarilla Levels also justifies the weakness in the index.
Nifty 15 Min Chart
Intraday charts however have shown some movement and is being faced by some resistance near the weekly H3 zone. A prominent Wolfe Wave is seen to exist as has been demonstrated in the attached image. A bounce from the 5th point has occurred and it is time to go long on the index for a quick swing.




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