NIFTY Futures Weekly Price Action & Technical Analysis as on 8-JAN-2017

On the first week of 2017, the market has shown strength by closing the important open gap mentioned in the last review, taking out the Monthly High, and closing the next open gap around (8288.55-8296.3), an important sign of strength.

Taking out the Weekly High means by most chances that the market is aiming towards 8720 (but the Stop is below the Weekly swing Low, at 7893.9).

The best scenario for the bullish case would be to see a new Weekly High made, then a pullback down that respects the Weekly swing Low at 7893.9, then a follow through to take out the High made.

If that happens, the way up though is full of strong resistance levels. The nearest Daily resistance is at 8400.5. The open gap at 8460.6-8525.75 is resistance by itself, and includes two other resistance levels – 8477 and 8518. Above is the most important resistance around, at 8543, and two other open gaps – 8598.1 till 8626.25 and 8678.25 till 8691.3.

For the bearish side, we need to see at least a Weekly bearish bar as a potential reversal down before seeking Daily swing bearish opportunities.

 

NIFTY50: Daily chart (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 8-JAN-2017

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. Self-promotion once a week is allowed. Too much promotion or using Contact info in ID will lead to account ban.