Take a look at the weekly chart of the Spot Nifty; I guess time to close that humungous election gap we made in May and consolidate the support at 3700/800 levels. Take a breather and start the run-up back to 4600 (see the shaded band in yellow)! One more thing see how beautifully the 20/50/200 periods MA’s seem to be aligning on the weekly chart; the 20 above the 50 and the 50 above the 200!!! Talking about weekly resistances, you can start from 4150/250 and as for supports 3800 is my fair guess.
The daily chart below finally did it! The market for a change did the obvious in the most obvious way and gave an H&S break down. The targets for this are 3800 and 3600 approximately(well these are just approximations and not carve in STONE!). The 200 periods MA is at near about 3730, maybe price will bring it above to 3800 and then go on to test it!
Finally the hourly chart; see how dangerously it looks dangling there; the last red bar was a sell off on Friday (last 45 minutes!). There is a bit of positive divergence on the hourly charts which hints a bit of buying can come but then; Mucho would be dependent on how Nifty reacts at 4050!
2 comments:
Hi manoj ...one small doubt..u mentioned about the golden cross on the weekly emas..20 above 50 and 50 above 200...doesnt this indicate bullishness still existing and what does it mean on weekly charts..thanks
Shaq Hi
Yeah that does indicate(or rather one way to look) a bullish setup...in normal circumstances the 20 MA above the 50 MA and the 50 MA above the 200 MA is perfect aligning of MA's for a bullish bias and the same is in reverse order when we have bearishness!!!
Cheers!
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