A combined analysis of Dow , FTSE and DAX from 2001-11

Here i'm trying to project how world markets are looking at the moment.

1. Dow Jones - It is making lower tops but making higher bottoms at the same time.It has retraced successfully from the top of 12900 levels and on its way upto test 12600 where the current trend line is placed. As one can see the lower part of the trend line is placed at around 11100 levels and only below that Dow's down ward move is confirmed.
The trend is still range bound with a negative bias and has to come below 11100 levels to confirm the downtrend.

2. DAX - The German index is also moving at par with the Dow and there would be a trend line resistance placed around 6600 levels.Unlike Dow it has broken higher bottom formation and broken major support levels.DAX has also retraced 61.8% and bounced back from there.

3. FTSE - This is one of the major markets where the bear market is still active as it has retraced 100% from its previous top. For the time being it can be considered as a double bottom formation but is expected to correct soon.The upside cap would be around 5900 levels.

Conclusion: These charts show you if we compare these 3 charts with Nifty our index is the only one which has retraced more than 100% and consistently making lower tops and lower bottoms.Thus if we compare it with the world markets we cant rule out a possibility of Nifty crossing 5330 and marching towards 5600 but by that time the world markets would be forming multiple tops and that would definitely act as a hindrance. If the world markets take out the trend line supports it would be altogether a different game. (Instead of Dow , S & P 500 would give us a better result but unfortunately i could not upload enough data into the software)

Nifty - An analysis from 2001 - 2011 (Strictly for an Investor )

Let's have a look at the weekly charts of Nifty from 2001-till date. This analysis would be based on simple trend line analysis and the more data we have the more would be the accuracy.If we have a look into Nifty chart we can see that it was consistently making higher tops and higher bottoms from 2001 till the time of recession. As an investor though he cannot catch the bottom with the simple trend line he could ride a trend. Let's come to the present scenario. Nifty is consistently making lower tops and lower bottoms and that should be considered as a bear market.As per the weekly chart the trend reversal could happen if Nifty consistently gives closing above 5200 in the short term and above 5330 in the longer term.If we have a careful analysis of this weekly chart we can see that above these levels Nifty could ride to 5600 levels.If Nifty is giving a consolidation a these levels as this is a downward slopping channel we could be in a bullish trend above 5200 levels provided it should not give a lower top after that.In my previous posts i was talking about 4500 levels because that year trend line got broken below 4720 , it could be a trap but the market has to prove that by crossing the above mentioned resistance levels to confirm the upside break outs and till then it is still very much in a bear market.(Please click on the chart to have a larger view)
(Followed by Nifty weekly update and a comparative analysis with the global markets (will be updated before Sunday evening)