Nifty 50: Short Term View (or) Day Chart, each candle is 1 week's price action (or) EOD Chart:
|Nifty - End of Day - 22 May 2012|
In our weekend analysis (click) we saw support on the Fibonacci 61.8%, as seen on EOD chart above.
We also studied that, the deflection of the 34 EMA and 200 DMA would be a plus from long term perspective.
As seen in the first circle - the above MAs are touching at end of trade today (2 points away from crossing).
The more famous Golden Cross refers to the 50 EMA and 200 DMA cross - the 50 EMA in pink is also shown above.
Meanwhile the Nifty is consolidating above the Fib61x - second circle.
The MACD looks like its bottoming out - third circle.
Nifty therefore has to take off above today's close - if the Bulls have to see bright, long term future.
If that does not happen - the 50 EMA & 200 DMA (Golden Cross) should deflect in the days to come (for the Bulls to let out a LONG sigh of relief).
We shall watch that space.