Nifty and German 40: Nifty recovers to 22590.00 level

• The Nifty index is in a seven-day bullish consolidation.
• An attempt to start a bullish consolidation of the German 40 index was stopped yesterday at the 18806.6 level.

Nifty chart analysis

The Nifty index is in a seven-day bullish consolidation. We climbed to the 22591.10 level and hope for further continuation to the bullish side. The index is making a minor pullback from this week’s high, falling to 22507.00. It is important that we are back above the EMA200 moving average and that we remain on the positive side. Based on that, we could see a further pullback until new support forms.

Potential lower targets are 22450.00 and 22400.00 levels. We need a new positive consolidation and a return up to the 22600.00 level for a bullish option. A new test of this zone would have a positive impact, so we expect to continue the recovery to the bullish side. Potential higher targets are 22650.00 and 22700.00 levels.

German 40 chart analysis

An attempt to start a bullish consolidation of the German 40 index was stopped yesterday at the 18806.6 level. At that level, we formed a lower high compared to last week’s. With that confirmation, a bearish consolidation was initiated and a drop this morning to 18640.0 levels. In this zone, we are testing the EMA200 moving average, and for now, we are successfully maintaining above it.

The bearish picture is still active, which could lead to a new bearish impulse and a drop to a new weekly low. Potential lower targets are 18625.0 and 18600.0 levels. The German 40 must move back above the weekly open price and the 18720.0 level for a bullish option. If he succeeds, he will be able to launch further recovery. Potential higher targets are 18750.0 and 18775.0 levels.

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