NIFTY Weekly Market Index Chart Analysis
The S&P CNX NIFTY traveled a range of 235 points during the week, but finally closed at 8121.45, a marginal 51 points higher than its open.
As visible on the chart, the range in which NIFTY is traveling since mid-May 2014 still remains valid, and the market closed on the line of resistance, after falling to the middle of the range during the week.
The weekly candlestick is a Hanging Man. After last week's Doji at the market top, a Hanging Man is not a very positive signal. The RSI has remained stationery as well and the divergence is not yet cured. Higher volume shows improving interest trading in the market.
Will NIFTY breakout from the point of Resistance and jump above, or will it dive back into the range? This should be observed during the week.
8145 is the resistance level for this week. This keeps going higher each week as the resistance is a slant and not horizontal.
Unfortunately, NIFTY has fallen below the 6-week steep-diagonal support line. This isn't a heartening signal.
(1) A strong upward move pulling the index high from the resistance point (8145 is the resistance level for the week) ; &(2) the index closing above the resistance line for 2-3 consecutive days can lead to positive signal if other indicators agree. Unless this happens, do not go in for long positions.
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NIFTY Weekly Market Index Chart Analysis
