NIFTY Futures Weekly Price Action & Technical Analysis as on 20-NOV-2016

The clear weakness of the Nifty has continued throughout the passing week.

Each Daily bar touched if not deeply penetrated the lower Bollinger band, and each bar didn’t miss closing below the Daily 200 SMA, a true sign of weakness. Pay attention that the Weekly bar closed slightly above the Weekly 50 SMA. These contradictions and the general Weekly price action raise the probability of having some sideways action inside the election’s week range in the near term (with a possible false break down).

The most important point around is the Low made just before the Brexit bullish move, at 7927.05. Taking out this Low is a midterm indication that the chances to deal with the Monthly 50 SMA, currently at 7350, – are high.

A good Daily bearish opportunity might come from testing again the mid Weekly range approximately at 8285, ending as a bearish reversal, such as Daily bearish pinbar on the sloping 8 EMA, closing below the 200 SMA. In this case a thrust down the next day can drive the price down to test the lower Weekly range (by the same amplitude).

A good Daily bullish opportunity might come from having a bounce up with out taking the Weekly Low at 8002.25, followed by a weak bearish day (or days), whereas the next sign of strength by taking out the High made again (a follow through), is a bullish signal to reach back at least the mid Weekly range.

NIFTY Futures, Daily chart with possible two scenarios that were mentioned (at the courtesy of netdania.com)

NIFTY Futures, Daily chart with possible two scenarios that were mentioned (at the courtesy of netdania.com)

 

 

 

 

Disclaimer: Anyone who takes action by this article does it at his own risk, and the writer won’t have any liability for any damages caused by this action.

Gil Ecker

getrade8@gmail.com

Market Analyst and trader

You may also like...

Rules of Discussion on NIFTY Futures Weekly Price Action & Technical Analysis as on 20-NOV-2016

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
4. Providing Advice/Recommendations/Tips is fine but it should be free. Members cannot ask to be paid for it. Paid Advice is stricly prohibited
5. Spam links are not allowed. Too much promotion or using Contact info in ID will lead to account ban.
IMP : Memebrs are requeuested to flag any violations to keep Forum Clean