Sunday, February 5, 2012

CNX Nifty Technical Analysis: Week ending 03 Feb 2012

Recap: We understood that the bears were at a disadvantage above the 34 EMA and planned to watch the US S&P 500 month close (post here). We took direction from the US S&P 500 (post here) and watched the 200 DMA being taken out (post here). We also noticed that 13 was unlucky for Bears :) as a 13 month old channel resistance gave way to the Bull onslaught (post here). We ended the week with a couple of studies (just below this post).

                                                            Nifty - End of Month Chart - 03 Feb  2012
Nifty End of Month Chart (EOM): The month candle is in the oversold zone. The Bullish stance is studied in the Ichimoku Update (here). A cross of the SMA 13 and EMA 5 needs to be watched - lets now zero in on the 'circled' area with the EOW chart.

Nifty - End of Week Chart - 03 Feb  2012
Nifty End of Week Chart (EOW): A major resistance gave way last week - freeing the bulls and making the bears run for cover. The channels to be watched are marked on the Price and oscillator. Let's now zoom in on the highlighted area with a EOD analysis.

Nifty - End of Day Chart - 03 Feb 2012
Nifty End of Day Chart (EOD): With the 200 DMA being crossed last week, it becomes our support for now.  Resistance is same as last week - the Fib 76x. Throw back now should not go beneath the 200 DMA. 

Looking forward: 5414 thereabouts is where the Fib76x is located. With some ranging between this level and the 200 DMA, one sees the up move safe to resume. Divergences on the Oscillators (EOD-chart) and World cues matter (analyzed in the post here). Intra Week updates shall be up.