Weekly technical Analysis for week ended 20^th June 2015.

Nifty opened on slightly weak note then onwards it started to move up and was in continues uptrend for the last five days  and one noticing feature of the up move was that all the candles were green candles indicating that bulls are trying all means to take the market up. This week they did not give bears any chance to fight back. So can we consider that the down move is over and we can expect the market to make a new high? The answer appears to be no. it can become yes only when nifty move above 8500 in next two days which seems to be difficult. One positive thing for bulls which has happed on Friday was that nifty was able to move above 200 day EMA and sustain there for whole day we have to see whether market would be able to sustain above it for the whole week to indicate strength.

It can be seen from the above that nifty has been finding resistance at 50 day and 100 day EMA indicated by red arrows for the last three months and unless and otherwise both are taken out decisively we cannot say that the trend has reversed. Another point to be noted is that nifty is making lower lows and lower highs shown by black arrows. Till that is being maintained we can expect the market the market to drift down wards. 

Another point to be noted is that the re-tracement of the fall is taking longer time indicating that the bulls are not as strong as it appears to be that is the reason I have indicated earlier that we have to move past 8500 in next two days. So if we do-not move past that level in next two days we can easily expect the market to at-least test the bottom or move below it.  So still technical parameters are indicating that the market is in down trend and has all chances of continuing the trend in coming weeks. So be cautious with the current up move as it can reverse at any point of time.

Mahiidar M

Enjoying Life

Trend is Friend.