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Monday, December 15, 2014

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Dark Cloud Cover Action - Week 3 of December 2014.



Nifty 50 - End of Month (EOM) Chart - Channel analyzing Data from 2008 onward - as on 12 Dec'14


Nifty 50 - End of  Week (EOW) Chart - Channel analyzing Data from Mid 2011 onward - as on 12 Dec'14


Nifty 50 - End of  Day  (EOD) Chart - Channel analyzing Data from Feb'2014, onward - as on 12 Dec'14




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




Patterns:
  • Last week's 'Dark Cloud Cover' Candle Pattern gives the Bears a massive break to the 13 SMA on the EOW #W1.
  • Last two candles on the EOM screen, form a Bearish Engulfing as of now #M1.
Support & Resistance:
  • Resisted near the ATH, index moves all the way down, to take support near the monthly 5 EMA, weekly 13 SMA, daily 50 SMA and the Mid line of the EOD Channel.
Moving Averages: 
  • The critical 5 EMA and 13 SMA on the EOD, crosses bearishly last week #D1.
Indicators:
  • MACD and its MA stay crossed bearishly and heads for the zero line #D2.


Wrap:
Bulls manage a halt near multiple supports that we track, Bears exploit the Dark Cloud Cover to take control of the short term screen #W1.




Looking Forward into this Week:


Patterns:
  • Dark Cloud Cover on the Weekly Charts active (Study Links herehere or elsewhere) #W1.
  • Long Term Bearish engulfing in progress, to be watched until month end #M1.
Support & Resistance:
  • Index supports that the Bears want to break below, are the Monthly 5 EMA (8110), Weekly 13 SMA (8203) and the R2 of the Month Pivot #M1.
  • Resistances that the Bulls want to get above are the 5 EMA on the EOW (8317) #W1 and the Wall for December (8494).
Moving Averages: 
  • Golden Cross (study herehere or elsewhere) of the 50 & 200 SMA is on - the MA's are converging #D1.
  • Bearish Cross or Bullish Deflection of the 5 EMA and 13 SMA, on the EOW with touch at 7767, to be watched for #W1.
Indicators:
  • STS, staying in the overbought for 3 Quarters+ now, reflects Bull domination of the Medium and Long Term Screens #W2.


Wrap :
Staying above the blue EOD channel mid line, Bulls aim for the red EOD channel top #D1.
Bears seek to use the Dark Cloud Cover to push the Index below the 5 EMA on the Long Term screen #M1.