Hourly Chart

Doji And Divergence, Is The Bull Run Over?

by Elearnmarkets on Market Analysis, Market Wrap

Nifty close 11623.90: On the Friday’s trading nifty made a new swing high. The previous high was at approx. 11572 level. After closing of today session, there is a divergence and a dragon fly Doji in the daily chart.

Let’s what could be the possible scenario on various time frame.

Hourly Technical: Due to the recent up move, moving averages have gone below the price. Latest support is at 11550 level and the resistance is at 10750 level. Once the index crosses today’s high (11629.65), there could be a good move towards life time high.

Indicators are pretty strong at this moment, RSI is above 65, Stochastic above 90, ADX is rising and it is at 25 level, and the CCI indicator is just below the positive 100.

Overall the sentiment is on the bullish side. If the price crosses the latest high, the indicators will be supportive. In case if there is any fall, multiple supports will be there.

Hourly Chart

(Hourly Chart)

Daily Technical: In the daily chart, the nifty made a higher high but the RSI is not able to cope up with the price. So there is a momentum lack. RSI has not made a higher high with the price. A mild correction can take place on the next few trading sessions but there is no sign of huge fall.

On the upside, If the nifty crosses the recent made high it can go up to 10750 level.

Except the RSI, other indicators are maintaining the same pace with the price. RSI is trading around 71 level, Stochastic is at 98 (approx..), ADX is above 30 and the CCI is above 100.

Due to the extended rally in the index, there could be a correction. In that case, support will be there.

Daily Chart

(Daily Chart)

Weekly Technical: On the last week chart, we have witnessed a Doji pattern. This week Nifty crosses the high of that Doji candle. So there is a good chance of the continuation of the up move.

Once the Nifty crosses the 11750 level the rally might take it to the 13000 level. On the down side we have a support at 11000 region.

On the indicator side, RSI is above 65, Stochastic is also trading at extreme overbought level, ADX is just below 15 and the CCI is above 200.

As we can see Moving averages are below the price and the indicators are also supporting the price. So there is chance of further up move.

Weekly Chart

(Weekly Chart)

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Technical Chart

(Technical Chart)


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