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Monday, November 3, 2014

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Bulls Persist - Week 1 of November 2014.



Nifty 50 - End of Month (EOM) Chart - Channel analyzing Data from 2008 onward - as on 31 Oct'14


Nifty 50 - End of  Week (EOW) Chart - Channel analyzing Data from Mid 2011 onward - as on 31 Oct'14



Nifty 50 - End of  Day  (EOD) Chart - Channel analyzing Data from Feb'2014, onward - as on 31 Oct'14



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


Patterns:
  • Evening Doji Star fails as Bulls clear 7964 the previous week and make a new ATH last week #M1.
Support & Resistance:
  • Index moves all the way from Monthly Pivot to the R2, last week #M1.
Moving Averages: 
  • The critical 5 EMA and 13 SMA on the EOW, deflecting the previous week, sets up the Bull charge to a new All Time High (ATH) #W1.
Indicators:
  • MACD above the zero line, divergence to price apparant #D2.


Wrap:
Index reaches R2 of the October Pivot as Bulls dominate all screens, Bears lose advantage but defend previous channel top #D1 




Looking Forward into this Week:


Patterns:
  • October candle is a Closing White Marubozu (Study Links herehere or elsewhere),  same is now active in the long term #M1.
Support & Resistance:
  • Index supports that the Bulls want to stay above, are the 5 EMA on the Week Chart #W1 and 8171 (November Wall).
  • Bears look to keep the Index below the old EOD channel #D1 and aim for sub 8000. 
Moving Averages: 
  • Golden Cross (study herehere or elsewhere) of the 50 & 200 SMA is on - the MA's are currently back to diverging #D1.
  • The critical 5 EMA and 13 SMA on the EOW stay Bullishly deflected 
Indicators:
  • STS staying in the overbought, continues to work for the Bulls #W2.


Wrap :
Staying above the November Pivot, and making new ATHs are Priority for the Bulls.
Bears seek to get back in the game by defending the old EOD channel top #D1.