Nifty in support zone: German 40 rises at the weekly high
- This week, Nifty remained under pressure below the 24200.00 level
- During this week, we watched the bullish continuation of the German 40 index
Nifty chart analysis
This week, Nifty remained under pressure below the 24200.00 level. The EMA 200 moving average is still on the bearish side, increasing the pressure on the index. This could trigger a bearish consolidation in the Nifty and send it to a new low. Potential lower targets are 24000.00 and 23900.00 levels.
For a bullish option, we need a positive consolidation of the index above the EMA 200 and 24300.00 levels. Then, the Nifty needs to stay there to form a position from which it can continue its recovery. By moving above 24400.00, we skip the weekly open price and move to the positive side. After that, the bullish momentum will increase because there are no obstacles to continuing to the bullish side. Potential higher targets are the 24500.00 and 24600.0 levels.
German 40 chart analysis
During this week, we watched the bullish continuation of the German 40 index. Today, we formed a new two-week high at the 18139.2 level. We saw a strong bullish impulse today after the news on US Core Retail Sales and US Initial Jobless Claims. The market immediately accepted it and started to grow. The index is in bullish momentum, and everything indicates that we are climbing to higher levels. Potential higher targets are the 18200.0 and 18300.0 levels.
For a bearish option, we need a negative consolidation of the German 40 back below 18000.0. That should be the beginning of a bearish trend. Then, with the pullback below 17900.0, we go below the daily open price. With the formation of a new daily low, the chances of continuing on the bearish side increase. Potential lower targets are 17800.0 and 17700.0 levels. Major support in the EMA 200 moving average is around the 17800.0 level.
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