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Monday, May 12, 2014

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Bulls revisit ATH - Week 3 of May 2014.




Nifty 50 - End of Month (EOM) Chart - Channel analyzing Data from 2008 onward - as on 09 May'14



Nifty 50 - End of  Week (EOW) Chart - Channel analyzing Data from Mid 2011 onward - as on 09 May'14



Nifty 50 - End of  Day  (EOD) Chart - Channel analyzing Data from Aug'2013, onward - as on 09 May'14




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


Patterns:
  • Bulls pull off an 'Engulfing' week to revisit the ATH #W1. 
  • Evening star on the Monthly charts in position to form #M1.
Support & Resistance:
  • The ATH was resistance for the Bulls last week while the new Day Channel Bottom was support #D1.  
Moving Averages:
  • Index above all the Moving averages that we track
Indicators:
  • STS bounces neatly off its Support line to launch Bulls to the ATH last Friday #W2. 
  • TRD hanging around the 61.8% Fibonacci retrace #M2.


Wrap:
All screens with the Bulls - Bears defend ATH (All Time High) and retain 'Evening Star' possibility #M1.




Looking Forward into this Week:

 

Patterns:
  • Bears can still trigger a 'Long Term'  Evening Star formation, if May candle closes below the range 6704-6712 #M1 (Study links herehere or elsewhere)  
  • Bulls look forward to a 'Medium Term', Three Outside up, if this week closes above last week's close (Study links here, here or elsewhere)
Support & Resistance:
  • Index support that the Bears look to break is 6841 i.e. the May Wall (Wall = Approx Hawala rate - study link herehere or elsewhere) followed by the Evening Star Trigger as above : 6704-6712 .
  • Day Channel top (around 7070) is now resistance for the Bulls #D1. 
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 getting below the 61.8% retrace boosts bears #M2.
  • STS staying above its support line and in the overbought good for Bulls #W2.


Wrap:
Bears see Evening Star formation below 6704-6712 #M1Bulls look to keep above support line on the STS and make 7070 #W2.