Nifty Point & Figure analysis: Catapult a morning star?

Catapult a morning star?

Date: 28th Dec 2014

Nifty last closing price: 8200.70

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Daily chart is still in the non trading zone. Double top buy from here will form Mini bottom and trigger fresh buy that will also trail up the trend line. Level to trigger the signal is at 8330 at the moment.

1 Min Chart

Figure 3 is 5 box value chart plotted with closing prices of every minute. Trend has turned up on this time frame due to formation of Bullish catapult that took prices above bearish trend line. Bullish catapult occurs when Triple top is followed by Double top buy pattern which is considered as a strong buy signal. Counts up to 8250 are active for short term traders. Formation will get negated below 8170.

Though strength will be gained if this catapult results in negating the down counts and trendline formed around 8300 levels that will also turn daily charts to positive.  

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 - Non trading zone!!

Non trading zone!!

Date: 23rd Dec 2014

Nifty last closing price: 8267

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Low pole has been formed above trend line which is a bullish pattern. But this is not the signal to trade. Positional traders need to wait for next basic signal to be formed and avoid trading till then. It is very important for a trader to know when not to trade. Charts indicate non trading zone.

1 Min Chart

Figure 3 is 5 box value chart plotted with closing prices of every minute. Retracement to down leg has happened. Recent Triple top buy signal has been negated and a sell signal is triggered that opens count of 8075 for short term traders. This count will be negated if Nifty trades above 8300.

There are opportunities for short term traders but trend on all time frames is not the same. Sometimes it is important for a trader to stay away and wait for a favorable setup to be developed. Merry Christmas to all!!

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 Point & Figure analysis: Bounce or Bottom? Here to stay some!!

Bounce or Bottom? Here to stay some!!

Date: 18th Dec 2014

Nifty last closing price: 8159.30

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Double bottom sell signal after Relative high helped to ask longs to exit as discussed in the last write  up. Such long streak of Os can shake bulls. Trend is still above bullish trend line hence still up on daily time frames. Positional traders need to wait for fresh setup. Either continuation sell signal or Mini bottom from here.  

1 Min Chart

Figure 3 is 5 box value chart plotted with closing prices of every minute. Trend turned bullish now. Triple Top Buy occurred above 8040 on day before followed by bullish trend line has changed the trend. Mini bottom formed at 8090 has made the stop closer for short term traders. Counts of 8270+ are open.

Figure 1: Nifty dly 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 Point & Figure Analysis: Longs to breathe some!!

Longs to breathe some!!

Date: 8th Dec 2014

Nifty last closing price: 8438.25

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Triple Top pattern that we discussed during earlier write ups worked well. Overall setup is certainly bullish and trading above bullish trend line. But Double bottom signal generated yesterday calls for exit to Longs. The formation is also called Relative High that means High of 'X' marked below upper Bollinger band. Longs need to wait for Mini bottom to be formed from here.

1 Min Chart

Figure 3 is 5 box value chart plotted with closing prices of every minute. Trend has turned bearish on this time frame. Short term traders should trade the Double bottoms unless it trades above Bearish line. Support and counts suggest possibility of 8380 - 8350 levels. 

  

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: 'X' dominating - Ride the trend!!

'X' dominating - Ride the trend!!

Date: 2nd Nov 2014

Nifty last closing price: 8322.20

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Uptrend discussed during last write up worked well and it proved a fruitful week for the one who took opportunity during correction earlier in the week. Trend remains up and 'X' is dominating.

1 Min Chart

Figure 3 is 5 box value chart plotted with closing prices of every minute. Trend is bullish on lower time frames also. Right side of the chart at the moment is a bookish uptrend and it must have been a wonderful experience for price followers. Remain long and ride the trend.

  

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: 'X' on all time frames!!

'X' on all time frames!!

Date: 26th Oct 2014

Nifty last closing price: 8014.55

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Trend has been up on daily time frame and now gained strength with Triple Top Buy along with Bear Trap signal occurring above 45 degree trend line on the same column. New Mini-Bottom is formed at 7750. Chart is bullish and every correction is opportunity to trade long unless it goes below trend line drawn from recent bottom of 7750.

1 Min Chart

Figure 3 is 5 box value chart plotted with closing prices of every minute. Triple Top buy signal discussed during last week worked well and 7890 was beaten. Price generated some whipsaws after achieving the same and witnessed broadening formation. But it was again broken up and formed Triple Top again which achieved the target in the same column. Price has turned bullish on lower time frames also and should remain the same till it maintains 7910.  

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.

Nifty P&F analysis: Range bound likely!!

Range bound likely!!

Date: 19th Oct 2014

Nifty last closing price: 7779.70

7925 worked well and price faced supply at that level to fall again and achieve the active counts near 7700.

Figure 1 is 10 box value chart plotted with daily closing prices. Trend is still up on this time frame being still above trend line but lower counts are active. Current signal is to avoid trades on this time frame.

Figure 3 is 5 box value chart plotted with closing prices of every minute and Figure 4 magnifies recent activity of same chart.  Price did not trade above 7925 and went down to achieve the counts near 7700 activated on various time frames. Trend is still down on lower time frames and trading below trend line but Triple Top buy signal and bear trap formed recently has activated count of 7890. There is a possibility of achievement this count provided price do not go below 7750. Going below 7750 will turn it all to bearish again and new lows of 7630 or less will become possible. 

 

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 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: It remains non-tradeable!!

It remains non-tradeable!!

Date: 12th Oct 2014

Nifty last closing price: 7859.95

Last week price move can be described as range bound in higher degree charts and volatile in lower time frames. 7980 discussed during last write up worked well and price turned down from that level after the bounce.

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. 3 columns are formed during last week but none generated P&F buy-sell signals. Price is above bullish line hence trend is up but lower count of 7710 is active. 7980 is resistance and close below 7840 will activate more lower counts.

Hourly Chart

Figure 2 is 10 box value chart plotted with hourly high-low prices. Price went below 7920 to activate lower counts. 7980 discussed during last week acted as a resistance. Both side counts are active and both side 45 degree objective lines are being drawn frequently. This is exactly the non-tradeable chart I was talking about.

1 Min Chart

Figure 3 is 5 box value chart plotted with closing prices of every minute. Trend is down and price is trading near support levels on this time frame. Recent setup has been interesting and magnified in Figure 4.

Quadruple Top breakout worked well even in downtrend and triggered 100 points move. Price confirmed resistance when High Pole was formed after the bullish breakout. Current setup is bearish because last column is combination of High pole and Bull trap bearish pattern that are formed in downtrend and when lower counts are active. Hence nothing is bullish in this chart at the moment except the support that can be seen when looked at left. Price going above 7925 will confirm the support and make things look better for bulls.

Price remains non tradable and both side counts are open on various time frames. Both side trends line are frequently being formed as well. Price remains bearish on lower time frames unless it trades above 7925.

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

Figure 2: Nifty 60 min 10 x 3 HL Point and Figure Chart

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

Figure 3: 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 - Non-tradeable setups!!

Non-tradeable setups!!

Date: 6th Oct 2014

Nifty last closing price: 7945.55

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. This chart indicates exhaustion in uptrend for a while. Current pattern is bearish and count of 7710 is active. But trend remains up being above mini-bottom and bullish objective trend line. Chart at the moment suggests stay away approach and wait for tradable setup to occur.

Hourly Chart

Figure 2 is 10 box value chart plotted with hourly high-low prices. This chart is 'non-tradable' at the moment as well.  Count of 7730 will be activated if price trades below 7920. Hence it would be a bearish event though there seems some strong support near 7870 - 7900 levels. Triple Top Buy signal will be formed if price trades above 7980 and that would be a first indication of possibility of achievement of 8200+ levels.  

1 Min Chart

Figure 3 is 5 box value chart plotted with closing prices of every minute. Bollinger bands and column squeeze formation indicates narrow range bound prices at the moment. This gives opportunity for Fulcrum analysis which is shown in Figure 4 of 1 box reversal chart with box value 10. Past several such setups are shown in the chart.

Price is range bound at the moment and both side counts are open on various time frames. 7870 - 7900 is strong support but price trading below 7920 will activate lower counts in short term. Price seems near multiple support levels and bounce is likely. Trade above 7980 will form bullish pattern on lower time frame charts that will indicate possibility of higher counts taking control. 

Figure 1: Nifty daily 10 x 3 CL Point and Figure Chart Figure 2: Nifty 60 min 10 x 3 HL Point and Figure Chart Figure 3: Nifty 1 min 5 x 3 cl Point and Figure Chart Figure 4: Nifty 1 min 10 x 1 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: Horizontal columns. Let them decide direction!!

Horizontal columns. Let them decide direction!!

Date: 14^th Sept 2014

Nifty last closing price: 8105.50

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Column has finally turned to ‘O’ after recording 60 boxes of ‘X’. Price is trading above bullish line and Trend remains up. Setup is bullish unless price closes below 7875.

Hourly Chart

Figure 2 is 10 box value chart plotted with hourly high-low prices. The setup is horizontal at the moment, meaning no decisive trend. ‘X’ is still dominating in the right part of the chart but High pole formation is followed by double bottom sell signal that indicates some weakness. Price has taken support at bottom of previous column of ‘O’. 8050 – 8040 seems immediate support and more downside counts will get activated if that level is breached. 8060 will become mini bottom if price trades above 8130.

1 Min Chart

Figure 3 is 5 box value chart plotted with closing prices of every minute. Horizontal trend can very well be seen on this chart. 8040 – 60 shown by yellow box in the chart is immediate support zone. Anchor point of the pattern is at 8090 level and setup around that would be interesting.

Horizontal trend or Fulcrum pattern gives opportunity to analyse the structure in 1 box chart. Figure 4 is 1 min chart of 5 box value plotted with 1 box reversal.  Within larger Fulcrum, there are smaller Fulcrum patterns shown in the chart by plotting horizontal counts from them. Breakout from these small patterns can provide short term trading opportunities. Breakout awaited from current pattern hence counts in both the direction are shown. Anchor Point hence base of the larger Fulcrum is at 8090 levels. The same kind of Fulcrum setup was developed at 7900 – 7950 levels between 19^th to 27^th August which was followed by upside breakout as shown in Figure 5.

As expected & wrote during last week, price is consolidating and short term trend has become horizontal. Let breakout happen.  8050 – 8040 is immediate support zone and 7940 – 7960 is next level to be seen. Larger trend remains bullish with higher active counts. And formation of ‘X’ on daily chart remains interesting unless price goes below 7875.

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

Figure 2: Nifty 60 min 10 x 3 HL Point and Figure Chart

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

Figure 4: Nifty 1 min 5 x 1 cl Point and Figure Chart

Figure 5: Nifty 1 min 5 x 1 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.