Monday, March 30, 2015

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Bear Up - Week 1 of April 2015.

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

  • The Evening Star formation we studied earlier, gives the Bears yet another red candle #W1- Index leaves behind the Long Term 5 EMA, giving the Bears an entry into the Medium and Long Term Screens #M1.
  • Bulls see their long term 'Three Outside Up' (last 4 candles) #M1. threatened by a potential Bearish engulfing (last 2 candles) #M1.
Support & Resistance:
  • Bulls failed to hit the March Wall last week and came back from our support, the S2 of the March Pivot to end near the April Wall #M1.
Moving Averages: 
  • The critical 5 EMA and 13 SMA on the EOW, has crossed bearishly last week #W1.
  • STS stays below the over bought line #W2.

Bears after defending the Weekly Channel top and following it up with an 'Evening star' - make red weeks all the way to the S2, on the March Pivot #W1.
Bulls manage a close near the April Wall (8343)

Looking Forward into this Week:

  • The Evening Star on the Medium Term Screen (Study Links herehere or elsewhere) is active #W1.
  • Long Term Charts, see the Three Outside Up (Study Links herehere or elsewhere) threatened by a possible Bearish Engulfing (last 2 candles)  #M1.
Support & Resistance:
  • Index resistances that the Bulls would want to get above this week, are 8343 (Wall for April 2015 and 8919.
  • Support Levels that the Bears want to get below, are the revised day channel's bottom line #D1 and 200 SMA on the Day Charts).
Moving Averages: 
  • Golden Cross (study herehere or elsewhere) of the 50 & 200 SMA is on - these MA's are currently converging #D1.
  • The critical 5 EMA and 13 SMA on the EOW, will stay crossed bearishly below 8919 #W1.
  • Bulls hope to see the STS, moving back above the overbought line #W2.

Wrap :
Bulls look to slip above the Wall (8343) and then get back above the Long Term (Monthly) 5 EMA #M1.
Bears look to the possible Long Term 'Bearish Engulfing' #M1, to stay put below the April Wall.