Monday, February 16, 2015

CNX Nifty 50 - Triple Screen 'Technical Analysis' - 3 Outside up 'Stop' - Week 3 of February 2015.

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

  • The Top of the Weekly Channel - which we had been waiting on from April 2014 (post) kept the Bulls down the previous week, Bulls come back with a green candle closing the week at 8806 #W1. 
  • 'Bullish Engulfing' on the Long Term Charts, becoming a Three Outside Up, trigger level is at 8809 as studied in earlier weeks #M1.
Support & Resistance:
  • Bears use the January close, 8809 as resistance for last week. Bulls get support at the 13 SMA on the EOW #W1.
Moving Averages: 
  • The critical 5 EMA and 13 SMA on the EOD, poised to cross Bullishly if the first trading day of this week, closes above 8760  #D1.
  • STS stays in the over bought #W2.

Bulls find support at the 13 SMA #W1, charge up, but fail to make it above Last month's close. 
Bears again prevent a Three outside Up possibility for now, by keeping the index below 8809  #W1.

Looking Forward into this Week:

  • Channel Top resistance of the Medium Term Channel, important for Bears #W1.
  • 'Bullish Engulfing' on the Long Term Charts, becoming a Three Outside Up (Study Links herehere or elsewhere) to be watched for #M1.
Support & Resistance:
  • Index resistances that the Bulls would want to get above this week, are the Wall for February 8952 and 8809.
  • Support Levels that the Bears would seek get below, are 8696 (5 EMA on the Weekly Charts) and 8507 (13 SMA on the Weekly Charts).
Moving Averages: 
  • Golden Cross (study herehere or elsewhere) of the 50 & 200 SMA is on - these MA's are currently converging #D1.
  • STS, staying above the overbought line, demonstrates the Bull domination of the Medium and Long Term Screens #W2.

Wrap :
Staying strong below the Wall, Bears can still get back into the game for the month.
Bulls look forward to a Three Outside Up triggering, with a February Close above 8809 #M1 and some new ATHs (All Time Highs) in the meanwhile.