Nifty Point & Figure analysis: 'X' reasserts control!!

'X' reasserts control!!

Date: 19th Jan 2014

Nifty last closing price: 8513.80

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Buy signal followed after Opposing Poles formation when price closed above 8330. We discussed during last write up to wait for next basic signal after such kind of pattern. Upper counts of 8740 and 8900 are active on this time frame and bottom is trailed at 8110. Exit long signal level currently placed at 8400 which is mid value of current column of 'X'. Interestingly, Nifty has never gone below 45 degree bullish line on this chart since September 2013.

1 Min Chart

Figure 2 is 5 box value chart plotted with closing prices of every minute. There is a series of bullish signals above trend line. Trade above 8530 from here will activate upper count of 8650. Trendline from mini bottom is placed around 8400 levels which can be treated as a stop for short term long traders. 'X' is back on all time frames. Keep looking for fresh buy signals.

Figure 1: Nifty daily 10 x 3 cl Point and Figure Chart

Figure 2: Nifty 1 min 5 x 3 cl Point and Figure Chart

 

 -  Prashant Shah, CMT, CFTe

Disclaimer:
All information provided above is for general information purposes only and does not constitute any investment advice. Company or Author shall not be liable for loss or damage that may arise from use of information provided above. The report is purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities. The readers of this material should take their own professional advice before acting on this information.

Nifty P&F analysis: Pole Pole Pole!!

Pole Pole Pole!!

Date: 13th Jan 2014

Nifty last closing price: 8299.40

Figure 1 is 10 box value chart plotted with daily closing prices. This kind of setup is rarely seen in Nifty chart. I found only 2 such occasions since inception on 0.15% box value. Low Pole is followed by High Pole which is followed by Low Pole again. This kind of opposing poles pattern on daily time frame indicate volatility within a specific range.

Price is basically moving within a range though trading above bullish line hence in uptend.  Time to let this noise get over and wait for next basic signal will generate a trade.

Figure 1: Nifty daily 10 x 3 cl Point and Figure Chart

  

  

 -  Prashant Shah, CMT, CFTe

Disclaimer:
All information provided above is for general information purposes only and does not constitute any investment advice. Company or Author shall not be liable for loss or damage that may arise from use of information provided above. The report is purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities. The readers of this material should take their own professional advice before acting on this information. 

Nifty Point & Figure analysis - 'X' got engulfed!!

'X' got engulfed!!

Date: 6th Jan 2014

Nifty last closing price: 8127.35

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Breakout has proved to be a bull trap and Double bottom sell signal has triggered in this chart. Current column of 'O' is High Pole that has generated sell signal in the same column. I call it a Bearish engulfing column. Basically it forms when High Pole & Bull trap occurs in the same column. Trading below 8080 will breach the bullish trend line and negate the upward counts that are still active.

1 Min Chart

Figure 2 is 5 box value chart plotted with closing prices of every minute. Resistance played role and reversal pattern High Pole occurred when Nifty went below 8427.  Column of High pole also formed Bearish engulfing and followed by Double bottom sell signal. Fall has negated some bullish counts and went below the support levels. Trend is down in this chart at the moment with active counts up to 7970 unless it trades above bearish trend lines placed around 8200 levels currently. 

Image 1 shows the Back testing results of Bearish Engulfing pattern occurred on daily chart of 0.15% box value.

Figure 1: Nifty daily 10 x 3 cl Point and Figure Chart

Figure 2: Nifty 1 min 5 x 3 cl Point and Figure Chart

  

Image 1: Back testing results of Bearish Engulfing pattern

 -  Prashant Shah, CMT, CFTe

Disclaimer:
All information provided above is for general information purposes only and does not constitute any investment advice. Company or Author shall not be liable for loss or damage that may arise from use of information provided above. The report is purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities. The readers of this material should take their own professional advice before acting on this information.

Nifty Point & Figure analysis: Ride your 'X'!!

Ride your 'X'!!

Date: 5th Jan 2014

Nifty last closing price: 8395.45

Wishing very Happy and Prosperous New Year to you all!!

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. 8330 discussed during last write up is triggered. Double Top buy signal has marked the Mini Bottom at 8030 and trailed up 45 degree bullish trend line now drawn from the same bottom. Interestingly, Buy signal is followed by Low Pole above the trend line (uptrend) and activated count of 8900.

Is it the target with stoploss placed at Double bottom sell signal to be formed below 8170 at the moment? I don't believe in such theories. Well, Double bottom sell signal in an uptrend is a signal for longs to exit. Ride the trend unless it is formed.

1 Min Chart

Figure 2 is 5 box value chart plotted with closing prices of every minute. Catapult proved a morning star indeed!! This was a nice example of important formation at lower time frames signaling the setups of higher time frames and leads to larger degree counts. Chart at Figure 2 is continuation of chart shown during last write up & it is sufficient to attract any observant eye.

Figure 3 is 10 box value chart of same time frame to look left & check the resistance levels. Fib resistance and Anchor Point signals exhaustion around 8375 which is well passed. Will price reverse from this resistance? Do we have an affordable reversal trade from here? Should we book longs looking at this? These thoughts are noise. Let Double bottom sell of High Pole form to exit your longs. Ride the rally till then.

   

Figure 1: Nifty daily 10 x 3 cl Point and Figure Chart Figure 2: Nifty 1 min 5 x 3 cl Point and Figure Chart Figure 3: Nifty 1 min 10 x 3 cl Point and Figure Chart

 -  Prashant Shah, CMT, CFTe

Disclaimer:
All information provided above is for general information purposes only and does not constitute any investment advice. Company or Author shall not be liable for loss or damage that may arise from use of information provided above. The report is purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities. The readers of this material should take their own professional advice before acting on this information.