Last Sunday indicated that the NS will be range bound and by the end of the week the
correction can resume. It was at 8185.60 and after 5 trading days hard work it
closed at 8243.80, though made low of 8140 and high of 8306 (both near vantage points).
NIFTY WEEKLY UPDATE CMP 8243.80.
Yahoo chart link...
EMAs : Bulls managed to change the direction of 50 after it made a death cross
and now 200/50 EMAs are parallel or almost at the same place now.
20 is still below 200 and 50 EMAs. 20 has to go above both 200
and 50 EMAs to start the show time for Bulls. Can this happen?
Let us take the support of and stochastics for clarity.
: histogram missing so let us take it as a 0. Signal is below 0
around -25. It is observed that when there is a gap between the signal and
histogram there is a tendency for the histogram to open on the side of
signal. So here the histogram opening below 0 again not ruled out.
Again no clarity here. Let us see the .
Stochastic: placed just above 80 on a downward path. For this to
move up a strong move more than 60 - 70 points required otherwise
one by one it will drop below 0. In the event of it dropping below
80 there could be an 80-100 points fall.
BBs : At 8380 and 7980 not yet opened up and not giving any clue.
If we look at the chart marked here we can see we are inside a bigger picture and the
present posted is a very small scene in the bigger picture. Just enlarge the
chart and you can see the small fitting inside the of the big
The bigger is like 2 hills or can be termed as an inverted WW pattern the
smaller one inside it is also a WW pattern. Interesting is it not?
TO SUM UP :
NS can play around 8180-8260 levels for Monday, and if it closes below 8220 on Monday/Tuesday then we can see a big drop on Tuesday/Wednesday. For the time being the price is supported at 200/50 and once it drops below and sustains/close below it, we can get the confirmation that the correction has resumed.