Morning Notes – Friday April 20, 2018

• Confirmed Uptrend
• December 2017 closed higher; index has been higher for the nine straight months; it has only one down month, March 2017, since October 2016
• Uptrend resumption since Feb 08, 2016 after a pull back of -15.2%

• The week ending on April 13 was a green candle top with small upper and lower shadow; the three-week pattern is morning star like
• Last week’s pivot point=2610.12, R1=2666.43, R2=2728.40; S1=2548.15, S2=2491.84; S1/S2 pivot levels were breached;
• An up week following a down week; second in last five weeks and fifth in last ten weeks
• A bearish ABCD pattern is emerging; break below 2553.80 would open up potential down targets near 2461.75 and 2251.50 levels
• Broke above a down sloping flag on April 24 2017;
  • flag-low was 2322.25 during 27-Mar-17 week; shorter flag-pole length is 317.19 and longer flag-pole length is 590.88;
  • 100% extension target of shorter flag-pole near 2639.41 is achieved; and the 161.8% extension target is near 2835.46
  • 61.8% extension target of longer flag-pole near 2687.41 is achieved; the 100% extension target is near 2913.13
• Broke above a down-sloping flag on November 14, 2016;
  • the flag low was 2083.79 during 31-Oct-16 week; the shorter flag-pole length is 202.13 and the longer flag-pole length is 383.71;
  • 261.8% extension target of shorter flag-pole near 2612.97 is achieved
  • the 161.8% extension target of longer flag-pole near 2704.63 is achieved; the 261.8% extension target is near 3088.34
• Last swing low, 2322.25, was the low on March 27, 2017; Last swing high, 2872.87, was during the week of January 22, 2-018; the low since the last swing high is 2532.69 during the week if February 5, 2018
• Below 10-week EMA; at 39-week SMA and above 89-week SMA
• Uptrend under pressure

Daily

• A red candle with almost no upper shadow and lower shadow equal to the real body; %K of Stochastic (13, 2, 3) is crossing below %D from over 95; touched 20-day EMA
• Near the upper limit of a symmetrical triangle;
• Above 20-day EMA and 50-day EMA, 100-day SMA and 200-day SMA
• Uptrend under pressure

• Break above the horizontal channel continues; 61.8% extension target is near 2726.00 and 100% extension target is near 2760.00; retracing from a resistance near 2719.00 level
• Trending up since 2:00 PM on April 6
• RSI-9 declined from a high of 86.11 at 6:00 AM on April 18 to a low of 18.44  by 12:00 PM on April 19; rising since then
• At/below 20-bar EMA and at EMA10 of EMA50
• Bias: Up

• Declining from a high of 2718.50 at 7:30 AM on April 18 in a rounding top pattern; forming a ‘W’ pattern, which Arthur Merrill named as W14, a bullish pattern
• Trending up since 3:00 PM on April 6 with a sequence of higher highs and higher lows
• RSI started to rise from a low of 17.46 at 1:00 PM on April 19, then dipped  from just above 50 to 31.66 and then again started to rise; above 50 and at highest level since 1:00 PM on April 19
• At/above 20-bar EMA, which is below 50-bar EMA
• Bias: Up-Side

• Bollinger Band (20, 2.0) is moving sideways since 4:45 PM on April 19 after trending down from 12:30 AM on April 18
• Broke below a descending triangle; achieved 100% extension target and came very near 161.8% extension target
• The band narrowed during Asian session and is expanding since 2:45 AM
• RSI is moving up from a low of 23.16 at 3:30 AM, touched 65 and is above 50
• The Stochastic (9, 1, 3): %K is crossed over %D just above 25
• Bias: Dn-Side

1. Energy
2. Finance

1. Consumer Discretionary
2. Consumer Staples
3. Materials
4. Industrials
5. Technology
6. Utility
7. Heath Care
8. Real Estate
9. Telecom