Short Term Correction with sharp
fall possibility in next week
Technical Analysis,Research & Weekly Outlook
(Jun 14 to Jun 18,2021)
Nifty-EOD Chart Analysis
(MACD & Stochastic)
Nifty-EOD Chart (11-Jun-2021):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 continuation with recent high and new life time top formation at 15,835.50 on 11-06-2021
2- Stochastic %K(5) is at 62.99 & %D(3) is at 65.50
3- Stochastic- %K(5) line has intersected %D(3) line downward and both lines falling from Overbought zone
4- Stochastic is showing negative divergence through moving down from Overbought zone when Nifty is moving up.
5- In MACD- MACD line is above Average line and turned flat while Average line is rising in positive zone.
Conclusions from EOD chart analysis
(Stochastic & MACD)
Although MACD is still showing up trend through MACD line above Average line but momentum has slowed down because MACD line has turned flat therefore emergence of first signal of some down moves.
As Stochastic is showing negative divergence and %K(5) line has intersected %D(3) line downward as well as its both lines falling therefore indicating that Short Term correction is on cards and will start any day in next week
Nifty-Last 7 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Jun 03 to Jun 11,2021):-
Technical Patterns formation in last 7 Sessions intraday charts
1- Selling(Resistances) in last 7 Sessions are between 15770-15835
2- Consolidation(Supports) in last 7 Sessions are between 15618-15671
3- Many times trading with Mixed Patterns formation in last 7 Sessions
4- 7 Sessions actual trading between 15557-15835
Conclusions from 7 Sessions
intra day chart analysis
Although life time highest formation and closing also at the life time top on 11-06-2021 but higher levels selling patterns were seen therefore previous resistances which are just below between 15770-15800 have been strengthened and once sustaining below 15770 will mean first strong signal Short Term correction beginning.
Good supports of last 7 Sessions are between 15618-15671 and Mixed Patterns formation were seen between 15671-15770 therefore if follow up selling develops in the beginning of next week then sharp fall will be seen towards the support(15671) of last 7 sessions because lack of supports are above it.
Nifty-Intra Day Chart Analysis
(11-Jun-2021)
Nifty-Intra Day Chart (11-Jun-2021):-
Technical Patterns formation in today intraday charts
1- Selling between 15807-15835
2- Up moves in Bearish Rising Channel
3- Selling between 15786-15812
4- Whole day actual trading between 15750-15835
Conclusions from intra day chart analysis
Although whole day Green zone trading after positive opening and closing also with 0.39% gains on 11-06-2021 but only intraday selling patterns formations were seen therefore firstly down moves are expected in the beginning of next week.
Conclusions
(After Putting All Studies Together)
All trends are up and Indian markets are continuously forming new life time top but emergence of Short Term Correction following signals:-
1- Stochastic has shown multiple signals of correction.
2- MACD has started to show downward trend beginning signals
3- Doji Candle formation on EOD charts and higher levels selling patterns formations on 11-06-2021.
4- Higher levels selling and below it Mixed Patterns formation in last 7 sessions.
As above signals of Short Term Correction and seems stronger also therefore expectations of Short Term Correction with sharp fall possibility in next week and and sustaining below 15618 will confirm deeper correction.
