Hello & welcome to this analysis on the small cap index CNX Small Cap Index activated a Bullish Harmonic Deep Crab on 24th Feb at 9350. From there it has now move all the way 10900 and on its way created 4 gap ups which is usually the sign of a strong trend (typical of Elliott Wave 3) What is most interesting is on 4th April it activated a Bullish Island Reversal...
The honeymoon period of Small Cap sector might be coming to an end now at the PRZ of a Bullish Harmonic AB=CD and Ichimoku Kumo support, 1.60 approx could see a halt in the outperformance of Small Caps over Large Caps that have been on a sideways to downward correction since FEB 2021. However, if it manages to breach further below then the Small Cap party of upper...
Resistance zone Relative strength wrt CNX500 trending up.
CNX SMALLCAP 7666 Volatility contraction pattern seen. Looking for a move towards 7780. A move above 7800 could be very positive as it would be crossing 200 day MA. Time to go long on small cap scrips that pass the trend template and that exhibit patterns (VCP, Cup & Handle, W, Pole and flag, etc).