Firstly up moves and Short Term Correction after fresh selling patterns formations
Technical Analysis,Research & Weekly Outlook
(Jun 01 to Jun 05,2020)
Following conclusive lines were told on 23-05-2020 in the part of "Nifty-Intra Day Chart Analysis(22-May-2020)" in "45 Sessions sideways market suggesting to follow next supports,resistances and Short Term Trend/Indicators":-
if Nifty sustains above 9072 after follow up consolidation then more up moves will be seen in next week
As was told 100% same happened and Nifty closed last Friday after 540 points weekly gains.
Nifty-EOD Chart Analysis
(Corrective Waves)
Nifty-EOD Chart (29-May-2020):-(Corrective Waves)
1- Impulsive Wave-5 completion at 12430.50 on 20-01-2020 and Wave-A of "corrective ABC Waves" beginning
2- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning
3- Wave-a of Wave-B completion at 9889.05 on 30-04-2020
4- Wave-b of Wave-B completion at 8806.75 on 16-05-2020
5- Wave-c of Wave-B continuation with recent top formation at 9598.85 on 29-05-2020
Conclusions from EOD chart analysis
(Corrective Waves)
Now Wave-c of Wave-B continuation with recent top formation at 9,598.85 on 29-05-2020 and its continuation is expected because at present no selling patterns formations on EOD charts.
Nifty-EOD Chart Analysis
(Averages & Stochastic)
Nifty-EOD Chart (29-May-2020)(Averages & Stochastic):-
1- Impulsive Wave-5 completion at 12430.50 on 20-01-2020 and Wave-A of "corrective ABC Waves" beginning
2- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning
3- Wave-B continuation with recent top formation at 9889.05 on 30-04-2020
4- SMA(Simple Moving Averages)
A- 5-Day SMA is at 9290
B- 13-Day SMA is at 9168
C- 55-Day SMA is at 9128
D- 200-Day SMA is at 10988
5- Stochastic-%K(5) is at 96.33 & %D(3) is at 82.98
Conclusions from EOD chart analysis
(Averages & Stochastic)
Nifty is showing strength because now trading above all Short Term(5,13) and Intermediate Term(55) averages but Stochastic has turned Over bought therefore Short Term correction may begin in next week. As intraday selling patterns were not seen in last 3 sessions therefore let selling patterns develop on intraday charts then Short Term correction will be considered.
Nifty-EOD Chart Analysis
(Fibonacci retracement levels)
Nifty-EOD Chart (29-May-2020):-
Nifty-Fibonacci Retracement levels of corrective Wave-A(7511.1 to 12430.50):-
1- 13.0%- 8150 (Retraced)
2- 23.6%- 8672 (Retraced)
3- 27.0%- 8839 (Retraced)
4- 38.2%- 9390 (Crucial)(Retraced)
5- 50.0%- 9970 (Crucial)
6- 61.8%- 10551(Crucial)
7- 70.7%- 10989
8- 76.4%- 11269
9- 78.6%- 11377
10-88.6%- 11869
Conclusions from EOD chart analysis
(Fibonacci retracement levels)
As 38.2% Retracement has been completed and good rally was seen in last 3 sessions of previous week and no selling patterns formations therefore its continuation will be considered towards next 50% crucial level(9970).
Nifty-Intra Day Chart Analysis
(29-May-2020)
Nifty-Intra Day Chart (29-May-2020):-
1- Up moves with downward corrections
2- More than 2 hours consolidation between 9454-9520
3- Up moves with downward corrections
4- Whole day actual trading between 9377-9598
Conclusions from intra day chart analysis
As all the up moves were with downward corrections and more than 2 hours consolidation was also seen in Mid-session therefore last Friday week started rally will remain continued towards next resistances in the beginning of next week.
Conclusions
(After Putting All Studies Together)
1- Long term trend is down.
2- Intermediate term trend is up
3- Short term trend is up
Nifty traded sideways between 8807-9584 for the last 20 sessions and last Friday closing was at the top of this range at 9580.30 and no selling patterns formations therefore rally continuation is expected towards following next resistances:-
1- 9850-9889
2- 9955-10142
Next supports of Nifty are as follows:-
1- 9454-9520
2- 9255-9285
3- 9087-9112
4- 8977-9046
5- 8920-8968
6- 8860-8905
7- 8807-8835
Wave-c of Wave-B continuation with recent top formation at 9598.85 and its continuation is expected above Wave-a of Wave-B(9889.05) because Nifty has closed at the top of last 20 sessions trading range(8807-9584) last Friday at 9580.30 and Intermediate term trend has also turned up.
As Short Term Indicator Stochastic has become Overbought therefore Short Term Correction may be seen in next week but firstly 1/2 sessions selling is firstly required which has not been seen yet,let it happen in next week firstly then Short Term Correction will be considered and will be seen as well.
As Nifty closed at 9580.30 last Friday and next resistances are starting from 9850 therefore expected that Nifty will firstly trade within this range and until Nifty will not sustain below 9454 after complete selling till then decisive down moves will not be seen.
Firstly up moves will be seen and Short Term Correction will be considered only after complete fresh selling patterns formations on intraday charts.