Weekly Technical Outlook - NIFTY Metal : 6500.20 weekly change (+5.12%) By GEPL Capital
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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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