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Monday, December 22, 2014

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Bulls Fight - Week 4 of December 2014.













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




Patterns:
  • Previous week's 'Dark Cloud Cover' Candle Pattern takes a break after failing to make it to previous 'low' on the EOD, giving the Bulls room to get back above the 13 SMA on the EOW #W1.
  • Last two candles on the EOM screen, form a Bearish Engulfing as of now #M1.
Support & Resistance:
  • Finding support above the previous low #D1, index moves up, to above the monthly 5 EMA, weekly 13 SMA, and the R1 of the Monthly Pivot.
  • The 5 EMA on the EOW and Day Channel's mid-line, were resistances.
Moving Averages: 
  • The critical 5 EMA and 13 SMA on the EOD, remains crossed bearishly last week #D1.
Indicators:
  • MACD and its MA stay crossed bearishly and falls below the zero line #D2.


Wrap:
Bulls manage a halt above the previous low, Dark Cloud Cover's effect keeps control of the short term screen with Bears below last week's close #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 this week, are the Monthly 5 EMA (8110), Weekly 13 SMA (8225) and the R2 of the Month Pivot #M1.
  • Resistances that the Bulls want to get above, are the 5 EMA on the EOW (8324) #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 7966, to be watched for #W1.
Indicators:
  • STS, moving below the overbought, would pause the 3+ quarter long Bull domination of the Medium and Long Term Screens #W2.


Wrap :
Staying above 8225, Bulls aim to break the blue mid-line of the EOD channel #D1.
Bears seek to use the Dark Cloud Cover to push and keep, the Index below the 5 EMA on the Long Term screen #M1.