Monday, April 18, 2016

India - CNX Nifty 50 - Triple Screen 'Technical Analysis' - Broadening Top - Week 3 of April 2016.


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

  • Index Pops out of the Day Channel, with a single candle  #D1.
  • A Broadening Top forms on the Day or shorter TF #D1.
Support & Resistance:
  • The Broadening Top Pattern was support, while the 200 SMA and the Broadening Top was Resistance last week  #D1.
Moving Averages: 
  • The critical 5 EMA and 13 SMA, are crossed Bearishly on the Month Screen #M1.
  • The redrawn TRD #M2, is facing resistance at the mid point (50% Fibo).

Pullback to Week Channel bottom in progress, Day Channel Top resistance breaks and Broadening Top forms #D1.

Looking Forward into this Week:

  • 'Opening White Marubozu' (Study Links herehere or elsewhere) is active on the Long Term chart #M1.
  • Broadening Top, is the next challenge for Bulls, on the Day Chart (Study Links herehere or elsewhere)  #D1.
Support & Resistance:
  • Immediate resistance is the Broadening Top & 200 SMA on the Day Screen #D1. Bulls aim for 8040, the 'Fibonacci 76.4% retrace of the 2010 low to the ATH)'  #W1.
  • Next Support is the Daily 50 SMA or Broadening Top #D1,  Bears would want life under 7367, the 'Fibonacci 61.8% retrace of the 2010 low to the ATH)'  #W1.
Moving Averages: 
  • The Death Cross (50 and 200 SMA) has been active for the past 6+ months #D1.
  • The MACD crossing to above its MA and histogram ticking above the zero line, is good for Bulls #M2.

Wrap :
Bulls see the Pullback from the Weekly 200 SMA, to the Week Channel Bottom #W1 continuing, with an upward break out, from the Broadening Top #D1.
Bears seek help from the resistances discussed to enable a deep dive, to below 7367, to take the index to below the Weekly 200 SMA #W1.