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Monday, May 23, 2016

India - CNX Nifty 50 - Triple Screen 'Technical Analysis' - Range Break? - Week 4 of May 2016.









  




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

Patterns:

  • Index has ranged this month about the monthly pivot, between the 5 EMA and 13 SMA #M1.
Support & Resistance:
  • 50 SMA on the weekly  screen #W1 was again resistance. The rising channel on the day screen was broken and the daily 50 SMA was support  #D1.
Moving Averages: 
  • The critical 5 EMA, is now bullishly above the 13 SMA, only on the Week screen #W1.
Indicators:
  • The TRD #M2, is facing resistance at the mid point (50% Fibonacci).

Wrap:
Pullback to Week Channel bottom #W1 and Throwback to Day channel top #D1, produces a trading range, Index ranges in it with a downward bias.



Looking Forward into this Week:


Patterns:
  • 'Evening Doji Star' (Study Links herehere or elsewhere) has been active on the Medium Term chart #W1.
Support & Resistance:
  • Resistance is at 8040, the 'Fibonacci 76.4% retrace of the 2010 low to the ATH)'  #W1. Support is at the (red) Day Channel Top #D1.
Moving Averages: 
  • A Death Cross (50 and 200 SMA) is active on the day chart, gap between these MAs is reducing, pointing to a possible Golden Cross #D1.
Indicators:
  • The MACD deflecting below and off its MA with its histogram below the zero line, is good for Bears #D2.


Wrap :
Bulls and bears again seek resolution  of the current range as studied.