Nifty 50 IndexLong
nifty -long for 4 %
sequence of events (technical) is explanied
why did nifty fall (marked in white )
1. 100-50 MACD did show negative divergence - price moved up and up while the MACD indicator stayed static (marked as 1b).also 3-6 MACD showed negative divergence at the same time -causing a rapid downmove
2.green red revrsal at the top with the red candle (abdandoned baby candle) violating (not touching ) 3 day EMA (marked as 1a)
3.nifty breached 18 day EMA with ease followed by a short consolidation in form of symmetrical triangle . note that during the consolidation , there was no more than 2 green candles or pivot cross upwards
4. 18 day EMA crosssed 50 day EMA downwards
5.there was another consolidation inlast week of october - during this period there was no more than two higher highs or pivot crossover upward. the consolidation lasted till the 18 day EMA came down . a red candle tested and confimred 18 day EMA as resistance , casuing a rapid downfall from there (7th nov )
6. at 22nd nov , nifty defended 200 day EMA and continued to saty above it till date
BULLISH changes (marked in yellow )
1. 200 day EMA defended
2. price crossed 18 day EMA on 25th and tested it as support on 29 th
3.on 3 rd dec, the pivot level (25th nov) was crossed upward and sustained above it ( first pivot breakout since 2 months ) & on 5 th dec . price crossed 50 day EMA and sustained above it
4.13 th dec , price went down , tested 18 day , 50 day , pivot level- all at once and closed above them -this brings confidence that bulls are active
5. MACD positive crossover -signifying that divergence as resolved
target - atleast 5 % upwards
why did nifty fall (marked in white )
1. 100-50 MACD did show negative divergence - price moved up and up while the MACD indicator stayed static (marked as 1b).also 3-6 MACD showed negative divergence at the same time -causing a rapid downmove
2.green red revrsal at the top with the red candle (abdandoned baby candle) violating (not touching ) 3 day EMA (marked as 1a)
3.nifty breached 18 day EMA with ease followed by a short consolidation in form of symmetrical triangle . note that during the consolidation , there was no more than 2 green candles or pivot cross upwards
4. 18 day EMA crosssed 50 day EMA downwards
5.there was another consolidation inlast week of october - during this period there was no more than two higher highs or pivot crossover upward. the consolidation lasted till the 18 day EMA came down . a red candle tested and confimred 18 day EMA as resistance , casuing a rapid downfall from there (7th nov )
6. at 22nd nov , nifty defended 200 day EMA and continued to saty above it till date
BULLISH changes (marked in yellow )
1. 200 day EMA defended
2. price crossed 18 day EMA on 25th and tested it as support on 29 th
3.on 3 rd dec, the pivot level (25th nov) was crossed upward and sustained above it ( first pivot breakout since 2 months ) & on 5 th dec . price crossed 50 day EMA and sustained above it
4.13 th dec , price went down , tested 18 day , 50 day , pivot level- all at once and closed above them -this brings confidence that bulls are active
5. MACD positive crossover -signifying that divergence as resolved
target - atleast 5 % upwards
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