Wednesday, February 1, 2012

EOD Analysis CNX Nifty - 01 02 2012 - Global Cues and the 200DMA

Nifty - End of Day Chart - 01 Feb  2012

In our ' Looking Forward ' for this week (post here) we suggested that " .. we should watch this month's close of the S&P 500.." The relevant post (below) analyzed that its 'Advantage Bulls' so far as the S&P is concerned. No coincidence then, that Nifty cracked the all important 200 DMA soon after. 

The Fib 76x now comes into our radar, divergences (marked)on the indicators need to be noted. We are also exactly at the channel top of the 13 month old weekly channel seen in the Analysis of the  Nifty End of Week Chart  (post here) - that is a 13 month old resistance !                  

S&P 500 - End of Month, January 2012 - Advantage Bulls.

S&P 500 - End of Month, January 2012

We studied this chart for the last three months of 2011. In our last post (here) we said that " the Bears would be impressed only if 1303+ happens to be the closing for Jan 2012"

January 2012 closed with 1312+ on the chart and its Advantage Bulls. Like the angle of climb of a fighter plane (which maxed out) changes, our channel lines too change after this price action. See new chart below. Staying above the Blue line is what would keep the Bulls in play for now...

S&P 500 - End of Month,  January 2012 - New Channels