May 3, 2016

ES Negative divergence update

  • The negative divergence which was discussed in a previous post has given weakness. But for a trending move in favour of bears to happen price need to start closing below 50 day SMA.

Nifty chart Analysis

  • Nifty got resisted near 8000. Now price moving towards the support zone near 7500 levels. Daily chart shows a bullish structure a possible Inverted head and shoulders. For this one to look good price should stay above 7500 levels. Weakness below 200 SMA But this will become a worry for bulls only if price starts to stay below 7500 levels. 4 Hour chart shows a possible bearish head and shoulders pattern.