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NIFTY Metal : 6500.20 weekly change (+5.12%)

Observation

* On Mid-term charts Nifty Metal is moving in a strong uptrend since March 2020.  In the current week the index has broken out of a 9 months long consolidation.

* The RSI indicator on all timeframes i.e Daily, Weekly and Monthly is sustaining above the 60 mark indicating strong bullish momentum.

* The RSI indicator on weekly timeframe is giving a trendline breakout and confirming our bullish momentum breakout.

Inference & Expectations

* The NIFTY Metal is moving higher after a rectangular formation breakout (consolidation).

* The price action on short and the medium term charts suggests that there is a possibility of an upside from current levels.

* We expect that the prices can move higher towards 7020 (38.2% Fib extension) followed by 7580 levels (50% fib extension).

* Going ahead 6200 will act as a strong support for the index.

Nifty Energy : 25833.55 weekly change (+2.09%)

Observation

* NIFTY ENERGY on long term charts is moving with higher highs and higher lows formation.

* In the current week the Index has broken out of a 5 months long consolidation.

* The index is continuously taking support at it’s 20 week SMA and moving higher which shows strong bullish undertone of the sector.

* RSI plotted on the weekly timeframe has given a range shift and is sustaining above the 50 mark since Oct 2020.

Inference & Expectations

* The NIFTY ENERGY has given breakout of a Ascending Triangle pattern on the weekly charts.

* The prices action and the technical parameters mentioned above point towards the possibility of mid-term bullish momentum to continue.

* Going ahead we expect the prices to head towards the 27834 (38.2% Fibonacci extension) and a break above which can take the Index to 29000 ( Ascending Triangle pattern Target).

* On the flip side if the prices dip below 24200 levels it can again enter into a consolidation phase.

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