|Nifty - End of Day - 06 June 2012|
In our last weekend study we concluded that the EOW Candle pattern and EOD Channel break would define action this week (click - see ."Looking forward..")
We also noted that for the Death Cross (50 SMA going below 200 SMA) to be avoided, the Nifty would need to maintain a high rate of climb.
The EOD channel is breached and we have the new RBG (Red Blue Green) channel to track - as above.
The MACD is close to cracking the '0' line as seen in the bottom circle.
Closing EOD today (at 5116) being above the EOW close of last week (5068) - The Bullish 'Three Outside Up' is on.
We see that the volume is flat for this up move in the middle circle.
200 SMA and 50 SMA are shown in the first circle and they are now 12 points away from a 'Death Cross'.
Bulls look forward to a Golden Deflection and the 'Three outside up"
Bears watch the narrowing gap between the 50 SMA and 200 SMA with anticipation.
Bulls as the current favorites are just below the MVWAP 34 - EOW as of now.