CNX Nifty 50 - Triple Screen 'Technical Analysis' - Bears below the wall - Week 1 of August 2014.

Nifty 50 - End of Month (EOM) Chart - Channel analyzing Data from 2008 onward - as on 01 Aug'14

Nifty 50 - End of  Week (EOW) Chart - Channel analyzing Data from Mid 2011 onward - as on 01 Aug'14

Nifty 50 - End of  Day  (EOD) Chart - Channel analyzing Data from Feb'2014, onward - as on 01 Aug'14

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

Patterns:

• Last week's Bullish Three Inside Up, formed by a slender 10 point margin fails to deliver #W1.
• July Month candle is a High Wave #M1. 

Support & Resistance:

• Bears defend the Day Channel Top #D1 and slip below the 5 EMA on the EOW #W1. Bulls keep it above the 50 SMA #D1.

Moving Averages: 

• The critical 5 EMA and 13 SMA on the EOD poised to cross bearishly #D1.

Indicators:

• MACD divergence with Price for the 3rd consecutive wave gives Bears some honey, MACD moves below its MA #D2. 
• STS below its resistance line - but remains in the over bought #W1.

Wrap:

Bulls lose control of the short term screen after index keeps below the August Wall 7721 (Study), while Bears further keep it below the August Monthly Pivot 7667 #D1.

Looking Forward into this Week:

 

Patterns:

• July monthly candle is a High Wave  (Study links here, here or elsewhere), and its now active #W1.

Support & Resistance:

• Bulls see support near the 13 SMA on the EOW (7517) #W1, while Index  faces resistance at the Month Pivot 7667 #D1. 

Moving Averages: 

• Golden Cross (study here, here or elsewhere) of the 50 & 200 SMA is on - however the MA's have initiated converging #D1.
• 5 EMA and 13 SMA on the EOD cross bearishly if index closes below 7767 in the next trading session #D1.

Indicators:

• MACD divergence to Price works for Bears, while the MACD staying above its MA helps Bull cause #D2.
• STS keeping in the overbought is good for the Bulls #W1.

Wrap:

Bulls look to defend the Day Channel Bottom #D1 and get above the 5 EMA on the EOW 7628 #W1, Bears look to keep below the August Pivot 7667 and break the EOD channel bottom #D1.