Monday, June 8, 2015

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Channel Holds - Week 2 of June 2015.


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


  • Bullish Harami on the long term charts produces a red June candle as of now #M1.
  • Bearish Harami on the Weekly charts becomes a 'Three inside Down' #W1.
Support & Resistance:
  • Index finds support at the Blue middle line of the EOW channel #W1, and near the 76.8% Fibonacci retrace as marked #W1. 
  • Blue middle line of the EOD channel #D1, resists the Index as does the 13 SMA on the weekly charts #W1.
Moving Averages: 
  • The critical 5 EMA and 13 SMA on the Monthly charts, gets closer for a Bullish deflection or a Bearish cross off 7878 #W1.
  • MACD and its MA stay below the zero line as does its Histogram #D2.

Bulls resisted at the 38.2% Fibo. of the move from the 'ATH to the May 2015 low' #D1, manages to close above the May 2015 low.
Bears defend the blue middle line of the Day Channel and send the index towards its bottom #D1..

Looking Forward into this Week:

  • A Bullish Harami (Study Links herehere or elsewhere) #M1 is active on the long term chart. 'Three inside Down'  (Study Links herehere or elsewhere) #W1 is active on the medium term chart. 
  • The Fibonacci retrace from the ATH to the May 2015 bottom and its retrace possibilities are worth a study (Study Links herehere or elsewhere).
Support & Resistance:
  • Bulls face resistance at the 61.8% Fibonacci retrace (8686) 'of the May 2015 low to the ATH' #D1.
  • Support is available, at the Day Channel's bottom line #D1 and the 76.4% Fibonacci retrace (8040) 'of the 2011 low to the ATH'  #W1 
  • Wall for June 2015 is 8321. 
Moving Averages: 
  • Golden Cross (study herehere or elsewhere) of the 50 & 200 SMA is on - these MA's are currently converging #D1.
  • The 5 EMA and 13 SMA on the Medium Term charts would cross Bullishly with a weekly close above 8683 #W1.
  • Bulls hope that the TRD would climb back above the 50% mark this month #M2.

Wrap :
Bulls look to get above the June Wall (8321) and close above 8683 #D1 .
Bears seek to get to below the 76.8% Fibonacci retrace (8040) as marked and close below 7878 #W1.