Monday, April 27, 2015

CNX Nifty 50 - Triple Screen 'Technical Analysis' - 3 Outside Down - Week 5 of April 2015.

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

  • Index falls back from the Mid-Line of the Day Channel #D1, and slip out this Channel, even as Bears get their Medium Term 'Three Outside Down' #W1.
  • A Long Term 'Three Outside Down' too, now looks possible - see last three candles #M1
Support & Resistance:
  • Index falls from the Day channel's mid line #D1, to the 200 SMA.
Moving Averages: 
  • The critical 5 EMA and 13 SMA on the EOW, remain crossed bearishly #W1.
  • MACD and its Histogram tick into sub-zero #D2.

Bears get a Medium Term 'Three Outside Down' #W1, and look at the same on the Long Term Screen too #M1.
Bulls get support at the 200 SMA #D1.

Looking Forward into this Week:

  • A Bearish Engulfing is active on the Long Term Screen (Study Links herehere or elsewhere) #M1 
  • Above can turn into a Three Outside Down (Study Links herehere or elsewhere) #M1 just like it did on the Weekly Charts #W1.
Support & Resistance:
  • Index faces resistance at the April Wall (8343) and the 5 EMA (8525) on the Medium Term Chart #W1. 
  • Support is available at the Month Chart's 13 SMA (8048) and the Day Chart's 200 SMA #D1.
Moving Averages: 
  • Golden Cross (study herehere or elsewhere) of the 50 & 200 SMA is on - these MA's are currently converging towards a Death Cross #D1.
  • Bulls hope that the TRD would take support at the 50% mark #M2.

Wrap :
Bulls look to get above 'The Wall' and clear 8491 to avert a Long Term 3 Outside Down #M1 .
Bears seek an April close, below 8491 (the March Close), triggering a long term Three Outside Down #M1 and maybe even a Death Cross (Study) #D1.