DJIA made an ATH on Aug 5, 2026 and has been retracing since then. Last Thursday, the futures dipped into a prior narrow congestion zone by forming a Big Red candle. Such zones are known to offer strong support. It was no surprise to see a strong reversal the next day, a Bullish Engulfing like candle that just stopped short of engulfing the prior red candle. Nasdaq broke out of a very prominent narrow congestion zone on Aug 13, 2026 in the prior week. However, the breakout pr

Gold broke out from a 7 week consolidation on Aug 5, 2026 and started consolidating shortly thereafter. After a brief consolidation of 7 days, gold broke out again last Wednesday, August 19th, 2026 into a prior narrow congestion zone. A big green candle last Friday carried price to the upper boundary of the congestion zone closing at the high of the day (and the week). The congestion zone failed to offer any resistance, a significant event that communicates the strength of th

The price action on the US indices last Friday does not inspire confidence after the bullish breakout on all of them. Below is a brief synopsis of the technical picture: DJIA, after a strong breakout to an ATH the previous week, consolidated sideways through the last week with a negative bias. Last Friday, it closed below the sideways range. The weekly candle formed a narrow Bearish Harami with its high below the high of the previous week's ATH, a bearish development and a se

Last week brought sharp moves across metals — but the follow-through has been mixed. Here's a quick technical read: Gold - Big Green breakout last Wednesday after a 6 week consolidation. Another big green candle on Friday took the price close to critical overhead resistance ~$4380 with a close below. A couple of closes above this level could develop into a trending move, however, a sell signal closes to this level could pull the price back below $4200. Silver - Similar to Go

The US market has broken out spectacularly during this week after an emphatic buy signal that triggered on Thursday in the prior week. Here is a brief technical picture of the main events during the week. DJIA Futures - Big green candle last Monday followed by another big green breakout on Tuesday above the previous pivot high to ATH. Small Reverse Hammer on Wednesday followed by a Bearish Engulfing on Thursday. Narrow range Bullish Harami on Friday, a sell failure and a fres

All the three frontline indices have triggered a buy signal last Thursday. Is this sustainable? What do the charts foretell? DJIA - A longish Bullish Harami formed at the lower boundary of a range on Thursday with a follow up green candle on Friday. Narrow congestion zone lies overhead. Nasdaq - Big Bullish Engulfing formed last Thursday after a range breakdown the previous Friday, a sell failure. A doji formed on Friday, right at the horizontal resistance overhead. S&P - Big

The chart below provides a fascinating example of how the price gets trapped between strong Gap Support below and Gap Resistance overhead and behaves like a ping pong ball. 1) A big Gap Up occured on 3rd Jul followed by a big decline on 8th Jul. The price retraced to produce another big Gap Up on 10th Jul that sits right below the former Gap. 2) Price gets sandwiched between the two gaps, Gap support below and Gap resistance above. For the next 7 days, the price seesaws bet

The weekly charts of Gold and Silver have spoken clearly on a bullish trend reversal, even if temporary. Lets look at the finer details. GOLD weekly chart - 1) Bullish Engulfing 2) Double Hammer 3) Sell Failure 4) Low at Horizontal Support The Double Hammer Bullish Engulfing candle on the weekly chart shows up as a Double Bottom pattern breakout on the daily chart. SILVER weekly chart - 1) Bullish Harami with the low of the candle above previous week's low 2) Strong Sell Fail

Last Thursday, Nifty gapped up in the morning and eventually broke out from a range triggering a buy signal. However, by the afternoon, it dipped back into the range closing the opening gap, thus producing a buy failure. A similar setup occurred on 7th of May this year, that resulted in a steep decline of over 1K points over the next 4 days. Banknifty had a similar buy failure last Thursday after breaking out from a range the previous day. Midcap Index had a 1-2-3 breakdown o