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Monday, May 9, 2016

India - CNX Nifty 50 - Triple Screen 'Technical Analysis' - Throwback & Pullback - Week 2 of May 2016.






 




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

Patterns:
  • Evening Doji Star.pattern #W1, brings in another red week and takes the Throwback to target #D1. 
Support & Resistance:
  • 50 SMA on the weekly  screen #W1 was resistance. The rising channel on the day screen was support  #D1.
Moving Averages: 
  • The critical 5 EMA, is now bearishly below the 13 SMA, on the Day screen #D1.
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.



Looking Forward into this Week:


Patterns:
  • Index is between the zone of "Throwback" to Day channel top #D1 and "Pull back" to Week channel bottom #W1 (Study Links herehere or elsewhere). This range to be resolved.
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: 
  • The Death Cross (50 and 200 SMA) has been active for the past 6+ months #D1.
Indicators:
  • The MACD is below its MA and its histogram is below the zero line, this is good for Bears #D2.


Wrap :
Bulls and bears seek resolution  of the current range as studied. 
Index being closer to the lower end of the range, bears hope for an upset #D1.