Nifty close11752.80: On the last trading session, the index created a New high (11856.15). Unfortunately, on that same trading session, it ends up making a dark cloud cover formation on the daily chart.
As we all know the Dark cloud cover formation suggests a negative sentiment. But as the previous rally suggests, the Bulls are still present in the market. Let’s discuss the each and every possible scenario.
Hourly Technical: After three days of consecutive rally, the end hours are pretty much flat. At this point, the index is resting at Mid Bollinger level (presently at approx. 11749.56). So for the short term, this level could act as a support. Apart from that 100MA and 200MA is also below the price, which would also act as strong support.
From the indicator side, RSI below 60, Stochastic is trading at oversold level, ADX is above 30 but it is slopping down and the CCI is trading just above the 0 level.
So as per the technical, it is looking neutral at this moment. In case any sell-off happens, multiple supports will be there. But if the 11810 (the recent swing high.) is breached 11900 level which is a psychological level, would act as a resistance.
Daily Technical: On the daily chart, the index has made a dark cloud cover formation (Double candlestick pattern) or we can also call it Bearish belt hold pattern (single candle pattern). So technically they both are negative.
The indicators are also suggesting the same, RSI is at 65 level (approx.), %K is also trading approx. the same level, ADX is above 35 and the CCI just below the 150 level.
We have observed there has been a negative divergence in the RSI and the Stochastic had a negative crossover.
So overall there could be a correction. But mid-Bollinger line (presently at approx. 11603), and 11500 (psychological level) would act as strong support. For the resistance 11870 and 11949 level might act as a strong resistance (Fibonacci levels).
Weekly Technical: On the weekly chart, the index has made a new high but the close is still below the previous high (11760.20 level is a psychological resistance level). Apart from that, the size of the candlestick is getting smaller as they are progressing higher.
On the technical side, RSI has a negative divergence (Not confirmed yet), Stochastic is above 90, ADX is above 15 and the CCI is at 148 level but slopping down.
So if there is a correction takes place in the near future this could be considered as an early sign.
11000 is the strong support for the index in case any correction happens but if the market continues its rally 12000 level would be the resistance.
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