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Monday, December 29, 2014

CNX Nifty 50 - Triple Screen 'Technical Analysis' - High Wave - Week 1 of January 2015.











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




Patterns:
  • Last two candles on the Month screen, form a 'Bearish Engulfing' as of now #M1.
  • Last Candle on the Medium Term Screen is a 'High Wave' #W1.
Support & Resistance:
  • Index finds support, bang on the R2 of the Monthly Pivot.
  • Day Channel's blue mid-line, was clear resistance.
Moving Averages: 
  • The critical 5 EMA and 13 SMA on the EOW, touch for cross or deflection at the start of next week #D1.
Indicators:
  • MACD and its MA stay crossed bearishly and below the zero line - histogram ticks higher #D2.


Wrap:
Bulls and Bears slug it out to a deuce and produce a 'High Wave' - Bears control the Short Term Screen while the Bulls hold on to the Medium Term Screen by a whisker #W1.




Looking Forward into this Week:


Patterns:
  • 'Dark Cloud Cover' on the Monthly Charts triggers, if December Closes below 8468 (Study Links herehere or elsewhere) #M1.
  • 'Bearish Engulfing' on the Monthly Charts triggers, if Month Closes below 8348 (Study Links herehere or elsewhere) #M1.
  • 'High Wave' on the Weekly Charts is active ((Study Links herehere or elsewhere) #W1.
Support & Resistance:
  • Index supports that the Bears want to break below this week, are the Monthly 5 EMA (8110) and Wall for January (8174) #M1.
  • Resistances that the Bulls want to get above, are the numbers noted in 'Patterns' above.
Moving Averages: 
  • Golden Cross (study herehere or elsewhere) of the 50 & 200 SMA is on - these MA's are currently in converging mode #D1.
  • Bullish Deflection of the 5 EMA and 13 SMA, on the EOW will happen, if index closes the week above 8151 #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 8151, Bulls hope the 'High Wave' Candle #W1, gives them a Bullish Continuation for now #W1.
Bears seek to remain below critical levels going into the New Year and get below the October'14 low on the EOD #D1.