Sunday, April 8, 2012

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Week: 02 April to 06 April, 2012 - Bulls hold steady

Our view last weekend was that, staying above the wall and the 34 EMA, Nifty would be Bullish.
On cue, we have a green candle, albeit for a truncated week.
We see that on the EOD, there is a Bullish cross of the 5 EMA and 13 SMA.
MACD on the EOD, continues to hang below the zero mark.
Let us study the way forward.

Nifty 50: Long Term View (or) Month Chart, each candle is 1 month's price action (or) EOM Chart:
CNX Nifty 50 - End of Month (EOM) Chart - 05 April, 2012. 

The Bearish Harami, we studied last weekend, remains un-triggered.
The candle for April is green, it takes support on the 13 SMA, above the 5 EMA.
Long Term Bulls, anticipate the cross of the 5 EMA above the 13 SMA. 
Bears hope that these MA lines, would 'touch and go' (reverse).
This screen is currently Bullish.

Nifty 50: Medium Term View (or) Week Chart, each candle is 1 week's price action (or) EOW Chart:
CNX Nifty 50 - End of Week (EOW) Chart - 05 April, 2012.
The candle for the week shows us the lack of confidence at higher levels(long upper tail).
Its well above the 34 EMA and currently Bullish.
Do notice the channel support, marked on the Stochastic indicator (below) also.

Nifty 50: Short Term View (or) Day Chart with closing prices in a line graph (or) EOD Chart:
CNX Nifty 50 - End of Day (EOD) Chart - 05 April, 2012.
In our EOD Analysis intra week (click for post),  we noted the MACD's sub-zero position.
We see that there is a Bullish cross of the 5 EMA above the 13 SMA.
Price is above the 34 EMA, which for a change has started raising.
The index made another lower high (see the three lower highs (and lows) from 01.02.12).
The short term view is Neutral.

Looking Forward:
Bulls have a good take off point staying above the 5 EMA on the EOD.
Below our 'green' channel bottom on EOD, Bears take strength.
The first trading day after a truncated week, would mean a lot of catching up.
Intra Week updates shall be up.