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Monday, January 11, 2016

India - CNX Nifty 50 - Triple Screen 'Technical Analysis' - Channel Bottom again - Week 2 of January 2016.













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

Patterns:
  • Bears hold below the Monthly 5 EMA and revisit the Weekly Channel bottom with a long red candle #W1.
  • Bears take down the index with the 'Three White Soilders' pattern #W1.
Support & Resistance:
  • Index found support near the 76.4% retrace of the 2008 low to the ATH #M1., resistance was at the monthly 5 EMA #M1.
Moving Averages: 
  • The critical 5 EMA and 13 SMA, deflect bearishly on the Week Chart #W1.
Indicators:
  • On the week charts the STS #W1, is still above the over sold zone.

Wrap:

Bulls fail to sustain above the daily 50 SMA #D1.
Bears defend the Monthly 5 EMA #M1, and crash the index to the Weekly Channel Bottom #W1...again.





Looking Forward into this Week:

Patterns:
  • 'Three White Soilders' 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 7494 the 76.4% retrace of the 2008 low to the ATH #M1. Resistance is at 8040 (the 76.4% retrace of the 2011 low to the ATH#W1.
Moving Averages: 
Indicators:
  • The MACD slips below the zero #D2.


Wrap :
Bulls aim to stall the fall with a Higher Low #W1.
Bears hope to break below 7494.