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Monday, March 31, 2014

CNX Nifty 50 - Triple Screen 'Technical Analysis' - EOW Channel Folds - Week 1 of April 2014.



Nifty 50 - End of Month (EOM) Chart - Channel analyzing Data from 2008 onward - as on 28 Mar'14


Nifty 50 - End of  Week (EOW) Chart - Channel analyzing Data from Mid 2011 onward - as on 28 Mar'14


Nifty 50 - End of  Day  (EOD) Chart - Channel analyzing Data from Aug'2013, onward - as on 28 Mar'14




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


Patterns:
  • January and February Candles formed a  'Piercing Pattern' #M1. Bulls near March end with a break-out new high.
Support & Resistance:
  • Index finally and decisively clears the earlier EOW channel top as also the Monthly Pivot's R2 #D1. Index moves now in a steeper up-channel as drawn #W1. 
  • The deflection point of he 13 SMA & 5EMa on the EOD #D1 was support for Bulls. 
Moving Averages:
  • The short term 5 EMA bullishly deflects off 13 SMA early in the week, to setup the break-out bull move #D1. 
Indicators:
  • MACD and its MA also deflect #D2, TRD nudging above the 61.8% retrace drawn #M2.
  • Volume for this up-move (month) has been average #M2.


Wrap:
Bulls control all screens - Bears retreat to defend the new Weekly Channel top #W1.




Looking Forward into this Week:

 

Patterns:
  • Bullish 'Piercing Pattern' (Study link herehere or elsewhere) on the Long Term Chart #M1 is active and has produced a breakout new High.  
Support & Resistance:
  • The current support is the April'14 Wall i.e. 6642 (Wall = Approx Hawala rate - study link herehere or elsewhere)
  • New EOW Channel top is now resistance for the Bulls #W1. 
Moving Averages: 
  • Golden Cross (study herehere or elsewhere) of the 50 & 200 SMA is on and steady, even as index is clear above these SMAs #D1.  
Indicators:
  • TRD Indicator staying above the 61.8% retrace boosts bulls #M2. MACD sliding below its MA favors Bears #D2.


Wrap:
Bears retreat to defend the new Weekly Channel top #W1Bulls look to stay above the April Wall (6642) and reach day channel top.