Nifty and German 40: Nifty is testing 22400.00 support level

This week’s bearish consolidation of the Nifty index was stopped at the 22400.00 level with the help of the EMA200 moving average.
During this morning’s Asian trading session, the German 40 dropped to a three-week low of 18380.2. 

Nifty chart analysis

This week’s bearish consolidation of the Nifty index was stopped at the 22400.00 level with the help of the EMA200 moving average. After the new support, the index moved up to the 22557.00 level. It could be the first initial step towards starting a new positive consolidation. We are waiting for the opening of the Indian market tomorrow, and we could expect a bullish gap at the start.

Potential higher targets are 22600.00 and 22700.00 levels. We need a negative consolidation and pullback below the EMA200 and 22400.00 levels for a bearish option. This moves us to the negative side, which strengthens the bearish momentum. After that, the Nifty index would be forced to look for fresh support. Potential lower targets are 22300.00 and 22200.00 levels.

German 40 chart analysis

During this morning’s Asian trading session, the German 40 dropped to a three-week low of 18380.2. We got that support and triggered a recovery to the 18500.0 level. We are currently holding in that zone, hoping for a new bullish impulse for further recovery. Potential higher targets are 18550.0 and 18600.0 levels.

We will have additional resistance in the 18650.0 zone and the EMA200 moving average. We need a negative consolidation and a pullback to the 18400.0 support level for a bearish option. A new visit to that level would increase the pressure on the German 40 index to make a step lower to a new low. Potential lower targets are 18350.0 and 18300.0 levels.

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