Nifty did a pause day yesterday at its 20 day moving average. So close above this level will help bulls to extend gains.
Closing above 20 DMA Price will target 5550 level were the resistance for index is strong.
Weekly chart's Triangle is looking good. After finding support at the triangles support line with the help of a bullish hammer Price looks like it is ready for an up move towards the resistance line of the triangle and if that succeeds 5700 may be achieved.
For bears Price has to break 5348 - 5370 support level on closing basis.
ES Has given a breakout of the channel as discussed below.
Now price sustaining above 1334 and 50 Hour moving average will extend gains for Bulls.
CHART-I
ES four hour chart with resistance line. Last 3 times when price hit this trend line the Price action confirmed easy shorting opportunities.
But now price is trying to violate the resistance line so a breakout may be on the cards.
Price in hour chart is staying above 50 Hour moving average. So A fall below 50 Hour moving average may give a deeper fall. As long as price stays above 50 Hour moving average a breakout is possible.
First chart shows price taking support on a trend line in daily chart and getting out of the descending channel pattern. MACD is about to give a buy signal, If you see the recent long and short signals of MACD in daily time frame has worked quite well.
So it will be safe to go long above 20 day moving average.
Last chart is the weekly time frame which also favors bulls.
Week will turn negative only on a weekly close below 129.58
Price having taken support at the support line of the consolidation pattern can move up to 59.30 level next week provided it does not fall below 56.57.
Stochastic indicator in daily chart is coming up from oversold level which might help bulls to continue the momentum of last three days.
So one can try a long trade with 56.57 as stop loss.
Price has closed near 50 DMA and in weekly chart at 20 Week moving average. So look for a daily close above 50 DMA for going long. If price gets resisted at 50 DMA we may see a fall.
Nifty has formed a Bullish candle. The long shadow shows buying at lower level. This may continue into the beginning of next week.
Price has closed above the weekly trend line shown in earlier posts.
MACD Bars and price in daily chart has been diverging for quite some time now and has resulted in a bullish breakout. Crossing 5490 - 5500 and closing above it will take nifty to 5600 and above.
But Positional bears will be safe as long as price remains below 20 week and 50 week moving average. Bearish cross too seems to be working in their favor. This bearishness may get changed if nifty trades above 5700 levels.
Bank Nifty Weekly chart is pausing near the important level of 10430 - 10450. Price closing the week near this level can give an up move in the coming week towards the upper trend line shown in the chart. Price closing near the support level means it forms a descending triangle pattern which is bearish in the medium term. Lets see how the week closes.
Day is forming a falling wedge pattern. For the pattern to look good it should resist one more time on the upper trend line and fall towards the lower trend line and then give an upper breakout.
First chart is the line chart of FOUR Hour time frame. Which shows lower high's and Lower lows's being formed the structure clearly favors bears. Every major rise is being sold off.
One hour chart is suggesting a possible bounce if the Right Shoulder of an inverted head and shoulders gets confirmed. Price should sustain above 50 Hour moving average for price to move in favor of bulls.
Weekly Chart of NFLX shows a clear smooth up trend. Not challenged yet.
Day chart shows price breakout from a bull flag pattern. It also looks like a cup and handle pattern.
If the breakout does not fail. The medium term target for this up move is 280 levels. Price breaking and closing below 250 levels will negate the bullish view.
