Nifty index goes below 21900.0, German 40 index retreats

• The Nifty index is in a slightly bigger pullback than we expected. 
• After Friday’s jump to the 18041.3 level, the German 40 index began to retreat. 

Nifty index chart analysis

The Nifty index is in a slightly bigger pullback than we expected. From Wednesday until this morning, we held in the zone around the EMA200 moving average in the hope of getting its support to continue to the bullish side. The opposite happened, so we saw a bearish gap from 22030.00 to 21980.00 at the market’s opening this morning. The value of the index continued to fall lower and lower to 21793.10 levels. Now, Nifty is closed again, and we are waiting for the next session to resume.

We could easily slip to a new low, and the potential lower targets are the 21700.00 and 21600.00 levels. We need a positive consolidation, a return above 22000.00, and the EMA200 moving average for a bullish option. A return above increases the chances of a further continuation to the bullish side. Potential higher targets are the 22100.00 and 22200.00 levels.

German 40 index chart analysis

After Friday’s jump to the 18041.3 level, the German 40 index began to retreat. First, on Friday, we immediately pulled back to the 17920.0 level. We got support there, climbed up to 18000.0, and closed the market at that level. On Monday, we first saw consolidation in the 17950.0-18020.0 range. This lasted until the start of the EU session when the index began to retreat to 17920.0 levels.

During the Asian trading session, the index fell even lower to 17876.4 levels, forming a new weekly low there. After that German 40 gets support at that level and grows up to 18000.0 level. We retest that level but fail to move above it. We start a new pullback to 17920.0 and turn towards the 17900.0 support zone. Potential lower targets are 17880.0 and 17860.0 levels. EMA200 is an additional support for us in the zone around 17860.0 levels.

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