- Expectations to see the Nifty decline early this week came true, but before that, we first jumped to a new all-time high of 22,526.60.
- On Friday morning, the German 40 index jumped to a new all-time high of 17905.0.
Neat chart analysis
Expectations to see the Nifty decline early this week came true, but before that, we first jumped to a new all-time high of 22,526.60. A pullback followed, with a new weekly low forming this morning at the 22256.00 level. The highest daily level for the index was 22450.00. The index is now under pressure to continue falling until a new support level is formed. Here we are testing the EMA50 and moving slowly below it.
We need a stronger downward push that would take a tangible step to the downside. Possible downside targets are 22300.00 and 22250.00 levels. The main support for the EMA200 is located in the area around 22000.00 levels. In order to return to the uptrend, we have to jump above today's high at 22450.00. Then, we will have the opportunity for further growth.
Chart analysis of the German 40 index
On Friday morning, the German 40 index jumped to a new all-time high of 17905.0. By the end of the day, we were looking for a pullback to support at the 17745.0 level. On Monday, we continue to slide to the support level 17658.8. Here we encounter the EMA200 moving average and find its support. The German 40 index begins a new positive consolidation and settles above the 17800.0 level.
The highest price for today is 17871.8, and we are currently moving below it. The index fell to 17780.0 and is now consolidating around 17800.0. Now press on the support area to see if it holds or not. Possible lower targets are 17760.0 and 17720.0 levels. To return to the uptrend, we need to move above the 17850.0 level, after which we expect the recovery to continue.
