Monday, January 4, 2016

India - CNX Nifty 50 - Triple Screen 'Technical Analysis' - Long Leg Doji - Week 1 of January 2016.

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

  • Following a 'Piercing Pattern', on the weekly chart, index saw lift off with two green weeks #W1.
  • December's Candle was a Long Legged Doji #M1.
Support & Resistance:
  • Index found support at the weekly 5 EMA #W1, resistance was around the daily 50 SMA #D1.
Moving Averages: 
  • The critical 5 EMA and 13 SMA, poised to cross Bullishly or deflect bearishly on the Week Chart #W1.
  • On the week charts the STS #W1, finally sees traction to clear the over sold zone.


Bulls take off from support at the Week Channel's bottom and  enjoy the rewards of the Piercing Pattern, for the second week running #W1.
Bears defend the Monthly 5 EMA #M1.

Looking Forward into this Week:

  • Piercing Pattern (Study Links herehere or elsewhere) is active on the Medium Term Chart #W1.
  • The Long Term Chart's focus moves to the Long Legged Doji (Study Links herehere or elsewhere) and its implications #M1.
Support & Resistance:
  • Index has immediate support at the 50 SMA on the Day Chart #D1. Resistance is at 8040 (the 76.4% retrace of the 2011 low to the ATH#W1.
Moving Averages: 
  • The MACD moves above the zero #D2.

Wrap :
Bulls aim to clear the Day Channel top, with a Higher High #D1.
Bears hope to defend 8040.