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Monday, December 8, 2014

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Dark Cloud Cover - Week 2 of December 2014.


Nifty 50 - End of Month (EOM) Chart - Channel analyzing Data from 2008 onward - as on 05 Dec'14



Nifty 50 - End of  Week (EOW) Chart - Channel analyzing Data from Mid 2011 onward - as on 05 Dec'14



Nifty 50 - End of  Day  (EOD) Chart - Channel analyzing Data from Feb'2014, onward - as on 05 Dec'14




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




Patterns:
  • Last week's candle forms a 'Dark Cloud Cover' Candle Pattern over the previous week #W1.
  • December Candle takes support on the Month Pivot #M1.
Support & Resistance:
  • Last week, the Bulls took support on the Month Pivot #M1 (blue line). The index moved slightly (10 points) above the November High resistance, precipitating the 'Dark Cloud Cover' #W1.
Moving Averages: 
  • The critical 5 EMA and 13 SMA on the EOD, look to deflect bullishly or cross bearishly this week #D1.
Indicators:
  • MACD and its MA cross bearishly #D2.


Wrap:
Bulls slip below the Daily 5 EMA, Bears manage to produce a Dark Cloud Cover #W1.




Looking Forward into this Week:


Patterns:
  • Dark Cloud Cover on the Weekly Charts need to be watched for further action (Study Links herehere or elsewhere) #W1.
Support & Resistance:
  • Index supports that the Bulls want to stay above, are the Wall for December (8494) and the Month Pivot #M1.
  • Resistances that the index needs to take out for more upside, are the ATH and EOD channel top #D1.
Moving Averages: 
  • Golden Cross (study herehere or elsewhere) of the 50 & 200 SMA is on - the MA's are still converging #D1.
  • Bearish Cross or Bullish Deflection of the 5 EMA and 13 SMA, on the EOD, to be watched for #D1. 
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 top, Bulls aim for the red EOD channel top #D1.
Bears need to use the Dark Cloud Cover to see the Index below the Wall for December 8494.