Monday, February 1, 2016

India - CNX Nifty 50 - Triple Screen 'Technical Analysis' - Morning Star ! - Week 1 of February 2016.

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

  • Long legged Doji, which gapped down the previous week, produces a 'Morning Star' as studied last week #W1.
  • January candle resembles an 'Opening Black Marubozu' #M1.
Support & Resistance:
  • Index was resisted by the Weekly 5 EMA #W1. Index had support at the 'Fibonacci 61.8% retrace of the 2010 low to the ATH' #W1.
Moving Averages: 
  • The critical 5 EMA and 13 SMA, are crossed Bullishly on the Day Screen #D1.
  • On the week charts the STS #W1, is still deep in the over sold zone.


Bulls pull up to the weekly 5 EMA (7576) and trigger a 'Morning Star' #W1.
Bears hold the index at the Day channel's mid point #D1 and below the 7606 mark.

Looking Forward into this Week:

  • A Morning Star Pattern (Study Links herehere or elsewhere) is active on the Medium Term charts #W1.
  • 'Opening Black Marubozu' (Study Links herehere or elsewhere) is active on the Long Term charts #M1.
Support & Resistance:
  • Index has resistance at the Weekly channel bottom #W1. Support is at the Daily 5 EMA #D1.
Moving Averages: 
  • The Death Cross (50 and 200 SMA) has been active for the past 6 months #D1.
  • The MACD moves above its MA, histogram ticks above the zero line #D2.

Wrap :
Bulls hope that the pullback to Week Channel Bottom continues, with help from the 'Morning Star Pattern' #W1.
Bears aim for the day channel bottom, assisted by the 'Opening Black Marubozu' on the month screen #M1.