Saturday, August 18, 2012

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Week: 13 Aug to 17 August, 2012 - Channel Top Resistance

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 - 17 Aug, 2012
Above is the Month Chart - EOM -  analyzing Data from 2008 onward.  

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 - 17 Aug, 2012.
 Above is the Week Chart - EOW -  analyzing Data from 2010 onward.  

Nifty 50: Short Term View (or) Day Chart, line chart of closing Prices  (or) EOD Chart:
CNX Nifty 50 - End of Day (EOD) Chart - 17 Aug, 2012.
Above is the Day Chart - EOD - analyzing Data from May 2012, onward. 

Learning from the Past Week: (click here for the post)
The Bulls were stopped by the Fibonacci 76.4% line seen on the EOD (5), just as we anticipated in our analysis, last week.
Bulls have stayed above the 5 EMA & 34 EMA on the EOM (1), EOW (3) & EOD (5). 
Bears hold the Index at the EOW channel top (3).
The resistance on the EOW - STS (4) also holds.
Negative Divergence on the MACD (6) is visible. 
The month at present looks like its forming a 'Bullish Engulfing Pattern' (1).

Looking Forward into the next Week:
Channel Top on the EOW (3), STS resistance (4) and the Fibonacci 76.4% on the EOD (5), together form a formidable Wall of Resistance for the Bulls.
The negative divergence (6) does not help their cause either.
So closing above the 5395 Wall, breaks the back of the Bears. 
Falling to below the MVWAP 34 (Monthly), approx 5315 would recharge the Bears.