Nifty and German 40: Nifty still dominates above 24600.00

• This morning, the Nifty index formed a new all-time high at 24661.25. 
• On Friday, the German 40 index rose to 18779.3, forming a new July high. 

Nifty chart analysis

This morning, the Nifty index formed a new all-time high at 24661.25. After its formation, the index slowed down and took a slight step back to the 24600.00 level. The Indian market is now closed, and if we look at the chart, we can assume a potential bearish gap at the opening of the next session. A critical level is 24500.00, the weekly open price.

By going below it, the Nifty would move to the bearish side. He would be under pressure to continue his retreat and seek new support. Potential lower targets are 24400.00 and 24300.00 levels. Additional support in the 24400.00 zone is the EMA 50 moving average. We need a positive consolidation and a move to 24650.00 for a bullish option. We are within reach of testing the previous high. With a new impulse up, we go to a new high and extend the bullish trend. Potential higher targets are 24700.00 and 24800.00 levels.

German 40 chart analysis

On Friday, the German 40 index rose to 18779.3, forming a new July high. However, the picture is different this week, and the index is in constant retreat. During this morning’s Asian trading session, we saw a drop to the 18440.0 level, a new weekly low. The EMA 200 moving average provides additional support for the index at that level. If pressure continues on German 40, it will have to drop to a new low.

Potential lower targets are the 18400.0 and 18360.0 levels. For a bullish option, we need a positive consolidation and a return above the 18600.0 level. There, we get support from the EMA 50 moving average. After that, we need to stabilize up there. After that, we can expect to see the initiation of a bullish consolidation. Potential higher targets are the 18640.0 and 18680.0 levels.