Nifty index and German 40: Nifty retreated below 22300.0
On Friday, the Nifty index climbed to a new high at 22794.70.
Last week brought us a drop in the value of the German 40 index to a new low of 17845.0.
Nifty chart analysis
On Friday, the Nifty index climbed to a new high at 22794.70. We stayed up there for a short time, and there was a pullback to the 22400.00 level. There, we expected to get support from the EMA200 moving average. On Monday, the index’s price managed to stay above and climb to the 22600.00 level. We encounter a new resistance at that level and start pulling back below the EMA200.
This led to this morning’s drop to the 22232.00 support level. There, we form a weekly low, and for now, we are maintaining above it. Nifty recovered to 22305.00 but remains under pressure from the EMA200 moving average. A mono slide below this morning’s support to a new weekly low could easily occur. Potential lower targets are 22200.00 and 22100.00 levels.
German 40 chart analysis
Last week brought us a drop in the value of the German 40 index to a new low of 17845.0. Fortunately, we get that support, and by the end of the week, we are back above the 18000.0 level. We are also climbing back above the EMA200 moving average, and with its support, we see yesterday’s bullish consolidation. The index quickly climbed above the 18200.0 level, after which we consolidated there. With the start of today’s EU session, the index gains new bullish momentum and climbs to 18306.6 levels.
We expect to see further recovery and growth to new higher values. Potential higher targets are 18350.0 and 18400.0 levels. We need a negative consolidation and pullback to this morning’s support in the 18200.0 level zone for a bearish option. The inability to hold above pushes us to a new daily low and thus confirms the bearish pressure. Potential lower targets are 18150.0 and 18100.0 levels.
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