Saturday, June 23, 2012

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Week: 18 June to 22 June, 2012 - Bulls on the Edge..

Learning from the Past Week:
We summarized our Triple Screen Technical Analysis of last week with the note that "the Long Term Bear and the Medium / Short Term Bulls would slug it out next week" click
As this week's candle tells us - Index did move higher and then down, but ended just 9 points away from the previous week's close.
Lets see this week's information...

Nifty 50: Long Term View (or) Month Chart, each candle is 1 month's price action (or) EOM Chart:  
CNX Nifty 50 - End of Month (EOM) Chart - 22 June, 2012.

A minor increase from last week's close does not improve the month's candle.
However one can revisit the fact that, all three of our short term indicators are poised for a cross.
Which way is the moot point.

Nifty 50: Medium Term View (or) Week Chart, each candle is 1 week's price action (or) EOW Chart: 
CNX Nifty 50 - End of Week (EOW) Chart - 22 June, 2012.

This week's candle although red - stands above the previous week's.
It is also above the 5 EMA - inherently strong.
If the Nifty closes above 5125 next week, the 5 EMA will cross above the 13 SMA - This is Bullish.

Nifty 50: Short Term View (or) Day Chart, line chart of closing Prices  (or) EOD Chart: 
CNX Nifty 50 - End of Day (EOD) Chart - 22 June, 2012.

An volatile week, saw a stale mate as the verdict.
Bulls finished strong as they were earlier - and above our short term MAs.
The 5 EMA and the 13 SMA look poised to meet and cross bearishly this week.
The MACD's Histogram has started ticking down.

Looking Forward into the next week:
Staying above the 5125 mark - Bulls can search for a Breakout above last week's highs.
Simultaneous Bearish cross (of 5EMA/13SMA) on the EOD and Bearish Deflection (of 5EMA/13SMA) on the EOW can take the index down fast.
Overhang of the Death's Cross remains - Next Golden Cross awaited.