Sunday, December 9, 2012

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Week: 03 December to 07 December, 2012 - Three Outside Up !?

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 - 07 December, 2012
  Above is the Month Chart - EOM -  analyzing Data from 2008 onward.

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 - 07 December, 2012
 Above is the Week Chart - EOW -  analyzing Data from Mid 2011 onward.

Nifty 50: Short Term View (or) Day Chart, line chart of closing Prices  (or) EOD Chart:
CNX Nifty 50 - End of Day (EOD) Chart - 07 December, 2012
Above is the Day Chart - EOD - analyzing Data from July 2012, onward. 

Learning from the Past Week: (click here for the post)

Bulls close November with an Bullish 'Engulfing Pattern' on the Long Term Charts #1 and follow it up with the beginnings of an even more Bullish 'Three Outside up' candlestick pattern.
The Short Fuse indicator, shows a down start to December as of now #2.
The resistance #4 on the the STS indicator - looks like its holding the Price.
Bears send back the Bulls at our identified resistance line - the 'Intra year high of April 2011' on the EOD - this was the next available High on the Charts #5.
MACD histogram is ticking down #6.

The Nifty has moved up in a sedate fashion last week after the Bull Frenzy previously seen. For the Bears critical resistances have done their work last week.

Looking Forward into the next Week:

A Three Outside up on the long term chart #1 is great news for the Long Term Bulls - So watch if the price closes December above last month's close - as studied in the links above.
Bulls would aim for the red Channel top on the EOW chart next #3.
Bears would want to keep it below our resistance line on the EOD #5.
The resistance line on the STS indicator #4 has given us inputs earlier - now it implies Bulls are on hold.
Staying above the 5EMA on the EOD #5 - Bulls have it good.

Breaking current resistances and producing a 'Three Outside up' on the Month Chart, is the Bull plan. Step 1 is to stay above the EOD resistance as marked.