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Monday, July 21, 2014

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Deuce - Week 4 of July 2014.



Nifty 50 - End of Month (EOM) Chart - Channel analyzing Data from 2008 onward - as on 18 July'14



Nifty 50: Medium Term View (or) EOW Chart (or) Week Chart - each candle is 1 week's price action 



Nifty 50 - End of  Day  (EOD) Chart - Channel analyzing Data from Feb'2014, onward - as on 18 July'14




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


Patterns:
  • Last week's Engulfing Pattern does not mutate into a Three Outside Down #W1.
  • Last two candles on the Medium Term Chart make a Bullish Harami #W1.
Support & Resistance:
  • Index holding above the Daily 50 SMA, sails through the Wall (7494) to get the 5 EMA and 13 SMA to touch #D1.
Moving Averages: 
  • EOD VOLEMA dips, while price line rises, last few days #D2.
Indicators:
  • MACD shows clear divergence with Price #D2. 

Wrap:
Bulls hold all screens, while Bears produce a stalemate by preventing critical averages from crossing #D1.





Looking Forward into this Week:

 

Patterns:
  • Bullish Harami Pattern on the Medium Term Screen is now active (Study links herehere or elsewhere).
  • Bullish Harami Pattern turning into a Three Inside Up (Study links herehere or elsewhere), is the next Bull Hope #W1.
Support & Resistance:
  • Bears will want to get back below the 5 EMA on the EOW (7567) #W1, while Bulls look to get above R1 on the Month Pivot #D1. 
Moving Averages: 
  • Golden Cross (study herehere or elsewhere) of the 50 & 200 SMA is on - however the MA's rate of climb is decelerating #D1.
  • The critical 5 EMA and 13 SMA on the EOD cross bullishly above 7626 (EOD for the coming Monday) -  else index sees a bearish Deflection #D1.
Indicators:
  • MACD divergence to Price look good for Bears, while the MACD crossing above its MA helps Bull cause #D2.


Wrap:
Bears look to break the 5 EMA on the EOW #W1Bulls seek to get above R1 on the month pivot and make new ATHs #D1.