Nifty and German 40: Nifty is still on the defensive
This morning, we observed a new bearish gap in the Nifty index, down to the 24200.00 support level.
Since Tuesday, the German 40 index has been in retreat.
Nifty chart analysis
This morning, we observed a new bearish gap in the Nifty index, down to the 24200.00 support level. Following this, a bullish consolidation was initiated, and the index value recovered to 24415.00. As the market is currently closed, we eagerly await the next session for further continuation. With momentum up to 24500.00, we are climbing above the EMA 50 moving average and are close to testing the weekly open price. The outcome of the next session will be crucial, as it could potentially shift Nifty to the positive side again.
Potential higher targets are the 24600.00 and 24700.00 levels. For the bearish option, Nifty would have to initiate bearish consolidation below the 24300.00 level. With this step, we break the previous bullish formation. This increases the bearish pressure, and the index would have to start retreating to a new low. Potential lower targets are the 24200.00 and 241000.00 levels. Additional support in that zone is the EMA 200 moving average.
German 40 chart analysis
Since Tuesday, the German 40 index has been in retreat. After forming a weekly high at the 18645.1 level, the index loses momentum going forward and initiates a pullback from there. Yesterday, we had a bearish gap at the market’s opening that indicated a further retreat. During this morning’s Asian trading session, the German 40 continued to fall, forming a weekly low at 18082.7 levels. Friday’s low was broken, which reinforces the bearish picture.
Potential lower targets are the 18050.0 and 18000.0 levels. For a bullish option, we need a positive consolidation above the 18200.0 level first. Then, we have to stabilize up there. After that, the German 40 index must start a further recovery and return to the bullish side. Potential higher targets are the 18250.0 and 18300.0 levels.
The post Nifty and German 40: Nifty is still on the defensive appeared first on FinanceBrokerage.