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Monday, May 30, 2016

India - CNX Nifty 50 - Triple Screen 'Technical Analysis' - Range Top - Week 1 of June 2016.









 




Learning from last Week: (click here for the previous post)

Patterns:

  • Nifty takes off from the Daily 50 SMA #D1, and makes a perfect touch at the top of our range, i.e. the bottom of the Week Channel (green) #W1. A 'Three inside up' on the Day Chart helps #D1.
Support & Resistance:
  • 50 SMA on the Day  screen #D1 was again Supporrt. The green channel bottom on the week screen was resistance  #W1.
Moving Averages: 
  • The critical 5 EMA, is now bearishly below the 13 SMA, only on the Long term screen #W1.
Indicators:
  • The TRD #M2, is nosing above the resistance at the mid point (50% Fibonacci).

Wrap:
Bulls use support at the daily 50 SMA to zip up to the green channel bottom on the week screen #W1.
Bears manage to hold the resistance at the above line #W1.




Looking Forward into this Week:


Patterns:
  • 'Three inside up' action dominated the day screen (Study Links herehere or elsewhere) last week #D1.
Support & Resistance:
  • Resistance is at R2 (8258 edited) of the Month Pivot #M1the 'Fibonacci 76.4% retrace of the 2010 low to the ATH'  #W1 is support (8040) #W1.
Moving Averages: 
  • A Death Cross (50 and 200 SMA) is active on the day chart, gap between these MAs is almost done, pointing to a possible Golden Cross this week #D1.
Indicators:
  • The MACD deflecting off the zero line, is good for Bulls #D2.



Wrap :
Bulls, precisely in touch with the green channel bottom on the week screen #W1, look to climb above it, and target a new ATH. Bears seek to defend this line.