Monday, August 24, 2015

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Bear Shoulder - Week 4 of August 2015.


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


  • Head & Shoulder formation, that we studied for the last two weeks,  continues as a possibility #W1. Bears attempting the 'Right Shoulder' to 'Neckline' fall now.
Support & Resistance:
  • The Index takes support well above the August Pivot's S2 and the mid-line of the Month Channel #M1 remained untouched last week.
Moving Averages: 
  • The critical 5 EMA and 13 SMA, are crossed bearishly only on the Day Screen as of last week's close #D1.
  • On the Day chart, MACD and the histogram are below zero #D2.


Bears retain control of the Day Screen, and took the index to near the month pivot's S2 #M1, last week.
Bulls close the week below S1 on the monthly Pivot #M1, but with a tentative hold on the Medium Term and Long Term Screens.

Looking Forward into this Week:

  • H&S pattern on the Day Chart is still possibility worth a study #D1 (Study Links herehere or elsewhere) - Neckline for activation of the pattern is currently around 7900.
Support & Resistance:
  • Bulls have support at the S2 of the Monthly Pivot #M1, Resistance is at the 5 EMA on the Medium Term Screen (8444) #W1.
Moving Averages: 
  • The Death Cross is active as long as the 50 SMA stays below the 200 SMA - gap between these MAs, is increasing #D1.
  • The critical 5 EMA & 13 SMA, on the Week Screen would cross bearishly if the index closes below 8228 this week #W1.
  • Bears hope that the STS would stay crossed below its MA, and reach the oversold, this week #W2.

Wrap :
Bulls, wish for life above 8228 and hope to colour the Month Candle green, this week #M1.
Bears gaining momentum, aim to reach the Neckline (7900) as studied above #W1.