Hello Traders,
today I`d like to show you the monthly chart for NIFTY50!
Something important occurred in July. It is possible to count N50 within a complete „five-up“ and the next move is, due to these theses, to the downside. A monthly close below the area of 10K will hint the odds for this view.
Following some alternate tools to analyze the chart, I use the Ichimoku cloud tool.
To check the monthly chart, it looks like everything is ok, `cause as long price is above the cloud (projected to the future) at right, the outlook is positive.
Switch to the weekly we see that there is may more trouble to come.
Price has declined to the upper line of the cloud (red arrow) and the cloud at right is closing the spread, meaning the upper green line starts to decline to the vertical red line. A breakout below the small cloud indicates a more weakening price in the next weeks to come.
And, at least, moving to the daily cloud, we will observe, that the „breakout“ of the cloud occurred on July 19. The result was a massive decline since then, and the future cloud declined also, widening the spread between both lines which is negative.
While price is below the cloud AND below the red-line, which is Tenkan-sen AND the blue-line which is Kijun (both are above the price line), there is no support following the Ichimoku Theory. A first hint is, that price will rise above the red-line (Tenkan-sen) and a cross of Tenkan-sen and Kijun-sen.
A lot of stuff, but if you like to learn more about Ichimoku trading let me now, and I will analyze from time to time by using this tool.
From a classic tool, we notice, that today's candle is the largest since July 8. This may indicate a change of trend short term but it is not required.
Short term it is necessary that price will hold above today`s low at 10848. A close below it will open the door to lower price still. Any rise above the 11123 levels on a closing price indicates a rising market in the coming hours and days.
For more details to explain Ichimoku cloud follow the link: www.investopedia.com...i/ichimoku-cloud.asp
Have a great weekend......
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
today I`d like to show you the monthly chart for NIFTY50!
Something important occurred in July. It is possible to count N50 within a complete „five-up“ and the next move is, due to these theses, to the downside. A monthly close below the area of 10K will hint the odds for this view.
Following some alternate tools to analyze the chart, I use the Ichimoku cloud tool.
To check the monthly chart, it looks like everything is ok, `cause as long price is above the cloud (projected to the future) at right, the outlook is positive.
Price has declined to the upper line of the cloud (red arrow) and the cloud at right is closing the spread, meaning the upper green line starts to decline to the vertical red line. A breakout below the small cloud indicates a more weakening price in the next weeks to come.
While price is below the cloud AND below the red-line, which is Tenkan-sen AND the blue-line which is Kijun (both are above the price line), there is no support following the Ichimoku Theory. A first hint is, that price will rise above the red-line (Tenkan-sen) and a cross of Tenkan-sen and Kijun-sen.
A lot of stuff, but if you like to learn more about Ichimoku trading let me now, and I will analyze from time to time by using this tool.
From a classic tool, we notice, that today's candle is the largest since July 8. This may indicate a change of trend short term but it is not required.
Short term it is necessary that price will hold above today`s low at 10848. A close below it will open the door to lower price still. Any rise above the 11123 levels on a closing price indicates a rising market in the coming hours and days.
Have a great weekend......
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!