Nifty Technical Analysis: holding 50-hour EMA

India’s Nifty 50 is trading in the red, but is defending the 50-hour EMA 10,445.

The bullish hammer reversal confirmed on Friday indicates scope for a corrective rally toward 10,700-10,800 in the next few days.

Therefore, I would be a buyer on the dips. The bullish outlook would be invalidated if the index closes today below the downward sloping  5-day EMA.



Oil on slippery floors

Brent oil is looking south, having witnessed a bear flag breakdown on the hour chart.

As of writing, the front-month contract is changing hands at $84.26 per barrel. The RSI o the hourly and dailies is biased toward the bears. Notably, the daily RSI has rolled over from the overbought territory and has breached the rising trendline.

I would want to sell oil for re-test of $82.64 with stops above $85.14.

The broader outlook would still remain bullish as the 50-day, 100-day and 200-day are sloping upwards and are located one above the other.





Dr. Copper is Flexing Muscles, Eyes break above Dec 2017 high

Copper has gained 6.3 percent this week and looks set to close above $3.30 (July 2014 high). It would only bolster the bullish technical setup, as indicated by the inverse head-and-shoulders breakout, solid rebound from the falling trend line in March and a rise above the ascending trendline.

Above $3.30, next big resistance is seen at $3.4617 (Dec. 23, 2013 high).

An uptick in copper prices is usually considered a positive sign for the global economy and also for the Australian dollar.

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