Nifty Index is near 22800.00 while German 40 is in retreat

• Nifty continues to dominate by climbing to a new all-time high at 22768.40.
• Last week, the value of the German 40 index jumped to a new all-time high at 18568.8 level. 

Nifty chart analysis

Nifty continues to dominate by climbing to a new all-time high at 22768.40. After the new high, a pullback to support at the 22600.00 level was initiated. We are under slight pressure here to continue lower to some better support. Potential lower targets are 22500.00 and 22400.00 levels. Additional support in the zone around 22500.00 is the EMA50 moving average, which was also good support for us last week.

For a bullish option, we need a return above the 22700.00 level. This would bring us significantly closer to the transitional high. The new testing could easily make the impulse above to a new high. Potential higher targets are 22800.00 and 22900.00 levels.

German 40 chart analysis

Last week, the value of the German 40 index jumped to a new all-time high at 18568.8 level. After that, in the continuation until Friday, we saw a pullback and a drop to the 18085.5 support level. During yesterday’s day, the index was in bullish consolidation up to 18330.0 levels. There we encounter resistance and form a lower high compared to the previous one. That was a sign to us that we would see a new pullback and that’s exactly what happened.

German 40 is now at the 18185.0 level and on its way to form a weekly low. We are down very close to testing into Friday’s support zone. We are currently under pressure to drop even lower and continue last week’s bearish consolidation. Potential lower targets are 18120.0 and 18080.0 levels.