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Monday, August 17, 2015

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Bulls retest - Week 3 of August 2015.














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

 

Patterns:
  • Head & Shoulder formation now shown on the Week Charts,  continues as a possibility #W1.
Support & Resistance:
  • The Index takes support at the August Pivot's S1 and Bulls retest the mid-line of the Month Channel #M1.
Moving Averages: 
  • The critical 5 EMA and 13 SMA, is crossed bearishly only on the Day Screen #D1.
Indicators:
  • On the Day chart, MACD and the histogram are near zero #D2.

Wrap:

Bulls come back from the S1 of the Month Pivot #M1, to clear all the MAs that we track.
Bears give up weekly gains but hold the index at the mid-line of the Long Term charts #M1.





Looking Forward into this Week:


Patterns:
  • H&S pattern on the Day Chart is still a possibility worth a study #D1 (Study Links herehere or elsewhere) - Neckline for activation of the pattern is currently around 7900.
Support & Resistance:
  • Bulls have support  at the S1 of the month pivot (approx. 8343) #M1, Resistance is at the same pivot's R1 (approx 8700) #M1.
Moving Averages: 
  • The Death Cross is active as long as the 50 SMA stays below the 200 SMA - gap between these MAs, is increasing #D1..
Indicators:
  • Bears hope that the STS would cross below its MA this week #W2.


Wrap :
Bears seek to get back to last week's low and take out the month pivot S1 #M1.
Bulls, now trading above all the MAs that we track, want to continue upwards, from the RS to the ATH (All Time High) #W1.