Short Term correction will be seen
Technical Analysis,Research & Weekly Outlook
(Jul 25 to Jul 29,2022)
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (22-Jul-2022):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 completion after new life time top formation at 18604.50 on 19-10-2021 and corrective Wave-A of "ABC" correction beginning with Double Zig-Zag pattern formation
2- Wave-A completion at 16410.20 on 20-12-2021
3- Wave-B completion at 18351.00 on 18-01-2022
4- Wave-C bottom formation at 15671.5 on 08-03-2022
5- Wave-X completion at 18114.70 on 04-04-2022
6- Wave-A completion at 15735.80 on 12-05-2021
7- Wave-B completion at 16793.80 on 03-06-2022
8- Wave-C completion at 15183.4 on 17-06-2022
9- Wave-A continuation with recent top formation at 16752.3 on 22-07-2022
10- Stochastic- %K(5) line has intersected %D(3) line upward and now its both lines are kissing in Over bought zone.
11- Stochastic:- %K(5)- 94.11 & %D(3)- 94.56.
12- Stochastic is showing negative divergence
13- In MACD- MACD line has intersected Average line upward and its both lines are kissing positive zone.
14- MACD(26,12)- 275.08 & EXP(9)- 253.40 & Divergence- 21.68
Conclusions from EOD chart analysis
(Stochastic & MACD)
Impulsive Wave-5 completed at 18604.50 on 19-10-2021 and "ABC" correction started which is in continuation with Double Zig-Zag pattern formation. Now Wave A of Zig-Zag pattern continuation with recent top formation at 16752.3 on 22-07-2022.
As both lines of Stochastic are kissing in Over bought zone therefore strong signal of Short Term correction emerged on EOD charts. In the same manner both lines of MACD are also kissing in positive zone therefore this indicator is also indicating Short Term correction beginning in Short Term.
Nifty-EOD Chart Analysis
(Averages)
Nifty-EOD Chart(22-Jul-2022):-
Technical Patterns and Formations in EOD chartsin
Averages:-
A- 5-Day SMA is today at 16492
B- 21-Day SMA is today at 16066
C- 55-Day SMA is today at 16069
D- 100-Day SMA is today at 16525
E- 200-Day SMA is today at 17051
Conclusions from EOD chart analysis
(Averages)
As Nifty closed at 16719.5 last Friday and it is well above 55-Day SMA(16069) & 100-Day SMA(16525) also therefore confirmation of Intermediate Term trend turning up but Long Term trend is still down because Nifty is well below its decider 200-Day SMA(17051)
Nifty-Intra Day Chart Analysis
(22-Jul-2022)
Nifty-Intra Day Chart (22-Jul-2022):-
Technical Patterns formation in today intraday charts
1- Sharp fall after gap up strong opening.
2- Up moves in Bearish Rising Channels
3- Selling between 16704-16752
4- Whole day actual trading between 16611-16752
Conclusions from intra day chart analysis
Although gap up strong opening last Friday but firstly sharp fall was seen and after that up moves begun which remained continued till last hours. As most intraday up moves were in Bearish Rising Channels and higher levels selling was also seen between 16704-16752 therefore expected that firstly down moves will be seen in the beginning of next week.
Conclusions (After putting all studies together)
Now Wave-A of Double Zig-Zag pattern continuation with recent top formation at 16752.3 on 22-07-2022 and no indication of its completion yet on EOD charts.
Although Wave-A has moved above all the Short and Intermediate Term averages but still below Long Term deciding Average during its 1568.90 points gaining 26 sessions journey therefore its Short to Intermediate Term correction is very much due.
As selling patterns developed on intraday chart last Friday and Short Term indicators are also suggesting that Short Term correction may begin any day therefore it will be seen in next week for correcting Wave-A rally.
