Nifty and German 40: Nifty strengthens bullish momentum
- Last Friday was favorable for the Nifty as we saw the index recover to 24600.00
- During this morning’s Asian session, German 40 climbed to a new weekly high of 18496.6
Nifty chart analysis
Last Friday was favorable for the Nifty as we saw the index recover to 24600.00. We finally saw a strong bullish consolidation that stabilized us above the EMA 200 moving average. Monday was quite quiet; this morning, we saw a bullish gap index up to 24734.30 levels. After that, we ended the session by staying above 24650.00. Towards the end of the session, the index began to weaken and retreated to 24672.00.
For a bullish option, we need a new impulse of Nifty above 24800.00 to continue the rise to a new high. Potential higher targets are 24900.00 and 25000.00 levels. We need a negative consolidation and a return to the 24500.00 level for a bearish option. There, we will test the weekly open price support. If it fails to stay there, it will be followed by a pullback below to a new weekly low. Potential lower targets are 24400.00 and 24300.00 levels.
German 40 chart analysis
During this morning’s Asian session, German 40 climbed to a new weekly high of 18496.6. After that, the index stopped there and began to retreat. The support at the daily open price was not helpful, and we see a decline below. We are now at 18380.0, and all indications are that we will see a further pullback to a new daily low. Potential lower targets are the 18300.0 and 18250.0 levels.
German 40 could receive additional support in the EMA 50 moving average at 18300.0. For a bullish option, we need a positive consolidation and price return above the 18450.0 level. With that step, we are returning above the daily open price, and the chances of continuing on the bullish side are increasing. Potential higher targets are the 18500.0 and 18550.0 levels.
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