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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)

Patterns:
  • 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.
Indicators:
  • On the week charts the STS #W1, finally sees traction to clear the over sold zone.

Wrap:

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:

Patterns:
  • 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: 
Indicators:
  • 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.