WEEKLY ANALYSIS for week ended OCT 14

Last Week Nifty conquered first the Month Lema @ 4930(after 2 months) and next the Week Hema of 5080 (after 14 weeks) and closed well above it. A Huge Bullish Candle has been formed with the open and Low at the same point (WHITE MARUBOZU)

Previously whenever such Bullish Candles occured the next week's continuation pattern was a Bullish trend reversal Candle Pattern - which lead NS to more downsides.

Considering the weeks white marubozu and viewing this w.r.t the Week 5D indicator - which always helps in Leading, the likelyhood of continuation of  the bullish trend is possible!!



In the Previous cases the 5D indicator was in a Highly Overbought Condition which signalled a down trend any time inspite of the Bullish candles. The 5D indicator of present Week hastriggered a BUY and it is  midway and not OverBought providing more room for upsides. So until the Week Hema @ 5084 is not breached, the uptrend is likely to contine to conquer the 100 DMA at 5270.

WITH A DAY CLOSE BELOW THE WEEK HEMA OF 5084 NS WILL AGAIN RESUME ITS DOWNTREND.

A Bearish Crab pattern has been formed in Weekly Charts:

The Pattern has initial targets (in week TF) upto 113% @ 5226 and 161.8% @ 5441 - which is 200DMA. The Long term Trendline joining the previous Highs will be reached at these levels!!

When NS closes well above the 200DMA at 5450 levels - as per the pattern it can reach a max of 224% -5715 to 361.8% - 6323 - But considering the present scenario these are far fetched and so it would be prudent to go step by step rather than waiting for weird targets.