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Monday, January 25, 2016

India - CNX Nifty 50 - Triple Screen 'Technical Analysis' - Morning Star ? - Week 4 of January 2016.














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

Patterns:
  • Inverted Hammer of the previous week, is followed by a long legged doji, which also gaps down #W1.
  • Bears again use the 'Three White Soldiers pattern to good effect #W1.
Support & Resistance:
  • Index closed at S2 of the Month pivot. Resistance was at the daily 5 EMA #D1. Index came back from below the support at 7367, the '61.8% retrace of the 2010 low to the ATH' #W1.
Moving Averages: 
  • The critical 5 EMA and 13 SMA, stay deflected bearishly on all three Charts..
Indicators:
  • On the week charts the STS #W1, is deep in the over sold zone.

Wrap:

Bulls finally manage to rise above the daily 5 EMA #D1.
Earlier the Bears touched 7367, with an active 'Three White Soldiers' pattern in play #/W1.




Looking Forward into this Week:

Patterns:
  • 'Three White Soilders' pattern (Study Links herehere or elsewhere) is active on the Medium Term Chart #W1.
  • The Last candle on the week chart is a Long Legged Doji (Study Links herehere or elsewhere) whose body shows a clear gap down #W1. 
  • Possibility of a Morning Star Pattern (Study Links herehere or elsewhere) forming exists #W1.
Support & Resistance:
  • Index has immediate resistance at 7494 the 76.4% retrace of the 2008 low to the ATH #M1 and then at the Weekly Channel bottom #W1.
  • Support is S2 of the Month pivot and  later at the Daily Channel bottom #D1.
Moving Averages: 
Indicators:
  • The MACD is below the zero line #D2.


Wrap :
Bulls pray for a pullback to Week Channel Bottom #W1.
Bears eye life around the day channel bottom #D1.