Nifty Point and Figure Analysis: Let ‘X’ sail & keep MODIfying the levels!!

Let ‘X’ sail & keep MODIfying the levels!!
Date: 9^th December 2013

The week is been a good week with ‘X’ continues to ride the trend and trail the reversal levels. 

Chart analysis:

Mentioned during last week that Nifty has formed Mini bottom and setup has become tradable. Figure 1 is 10 box chart plotted with closing prices. Trade is still on for Longs with stop loss trailed at 6160. It is approaching at previous resistance where bearish patterns were formed to push the prices lower.

Figure 2 is same chart plotted with High Low prices. Current column is ‘O’ because Nifty made low below 30 points from High of 6300 made on Thursday. Exit level for longs is 6140 in this chart. Setup looks bullish as price has managed to break out from the consolidating column.

Price is approaching resistance and upper band zone. Hence I would like to follow levels of high-low chart. Interestingly, If Nifty trades above 6270 on Monday without trading below 6230, than stoploss for long will be trailed to 6230.

State polls have made prices very volatile and it is always difficult to take a call on markets or trade them in such scenarios. And such nervous rides are expected till central elections. Sticking to price direction and following levels makes things easy. It also helps in attaining the detached involvement in markets which is very important for a trader. There is no point in trading if it doesn't make you enjoy it.

P&F strategy for next week:

Remain long with stop trailed at 6140. Let’s see if mentioned scenario is met and it gets trailed from here.   

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

                                

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

                                       

 -  Prashant Shah, CMT, CFTe

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