Forget shorting for a while!!
Date: 1^st July 2013

View and levels of last week did well. I mentioned that fresh shorts need aggressive exits and Double Top buy should be taken due to hint of supports around 5600 box value. The support was taken and Double Top Buy signal was triggered in the chart above 5670 level that also activated the vertical count of 5840.

Figure 1 is 10 box P&F chart plotted with closing prices. Price has reversed from multiple 45 degree internal lines and Anchor Point levels with Low Pole formation that makes the reversal most important. Figure 2 is a chart plotted with High Low prices. As can be seen from the chart, price has reversed from lower Bollinger band and generated a Double Top Buy signal. We did not get Double Bottom Sell pattern below 45 degree lines in both the charts. This is an important piece of information.

The set up is looking good to me. We can’t always get vertical reversals but formation is making possibility of 5960 – 5980 live and I would recommend buying corrective moves from here. Atleast forget shorting unless we trade below 5700.

For P&F Traders, Don’t miss Double Top Buy Signals and Ignore Double Bottom Sell signal atleast for a while. Aggressive traders can buy formation of Xs.

Figure 1: Nifty 10 x 3 CL Point and Figure Chart

Figure 2: Nifty 10 x 3 HL Point and Figure Chart

-         -  Prashant Shah

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