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Monday, October 6, 2014

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Channel Holds - Week 2 of October 2014.



Nifty 50 - End of Month (EOM) Chart - Channel analyzing Data from 2008 onward - as on 01 Oct'14


Nifty 50 - End of  Week (EOW) Chart - Channel analyzing Data from Mid 2011 onward - as on 01 Oct'14


Nifty 50 - End of  Day  (EOD) Chart - Channel analyzing Data from Feb'2014, onward - as on 01 Oct'14



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


Patterns:
  • Possibility of the Evening Doji Star happening, gets brighter after September's Doji closes 10 points above the August close as studied #M1.
  • 'Inside Day' Pattern forms on the Weekly Chart (or do we call it an 'Inside week?') see last two candles #W1.
Support & Resistance:
  • Bulls close below the 5 EMA on the EOW as studied, but keep well above the 13 SMA #W1.
  • Bulls again find support near the green day channel bottom #D3 and at the October Wall (study).
Moving Averages: 
  • The critical 5 EMA and 13 SMA on the EOD are Bearishly crossed #D1.
Indicators:
  • MACD threatens to dive below the zero line #D2. 

Wrap:
Bulls stay above the October Wall (7912), Bears light the hope of an Evening Doji Star happening #M1.




Looking Forward into this Week:


Patterns:
  • Possibility of the Evening Doji Star (Study Links herehere or elsewhere) happening is brighter and now depends on this month's close (below 7964) #M1.
  • 'Inside Day' Pattern on the Weekly Chart (Study Links herehere or elsewhere) is active #W1.
Support & Resistance:
  • Index support that the bears look to crack, is the 13 SMA on the EOW (7876) #W1.
  • Index  faces resistance at the recent High (8161) #D1. 
Moving Averages: 
  • Golden Cross (study herehere or elsewhere) of the 50 & 200 SMA is on - the MA's are currently back to converging #D1.
Indicators:
  • STS staying in the overbought, will work for the Bulls #W2.


Wrap :
Keeping above the October Wall and Day Channel Bottom #D1, Bulls are good to continue their run.
Bears have all of October to work for an Evening Doji Star #M1, immediate task is to get the Index below the October Wall (7912).