Monday, 15 August 2016

Technicals for week ending – 12th August 2016.

Note : This is not a recommendation and I am not a registered analyst, these are just my observations and an assessment of the positives and negatives from a longer term point of view.

Nifty Weekly
On a longer term time-frame a lot of data sets still suggest to keep a bullish/positive stance on Nifty and Gold.

Observations (charts below):

No changes to any of the charts put out in the last weekly update. However, keep an eye on Bank-Nifty as it is consolidating near a major resistance zone for last 4 weeks now. As for Nifty the areas in the purple parallel channels seem as logical support zones. If we get a dip to the 8300 zone, would be looking to add to existing ETF positions there.


  
On goldbees, yes still keeping some as we are above a major support zone and above a rising 40 week MA and On a relative strength basis the ratio of goldbees divided by Nifty and the 10 year bond index is above its 40 week MA.




To conclude – the weight of the evidence still leans towards the bullish side with more positives. RISK to this would be the Nifty and Goldbees closing below their respective 40 week moving average. A close below that moving average and I will be out.

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