Nifty P&F analysis: It all comes to ‘X’ when trend is up!!

It all comes to ‘X’ when trend is up!!

Date: 15^th April 2014

Intraday price saw ticks below 6670 during last week but ‘X’ assured the control over trend immediately and reappeared to stand by longs.

                                                                                                                                             

Chart analysis:

Figure 1 is 10 box value chart plotted with closing prices. Statistical results of Double top buy pattern above upper Bollinger band were discussed here. It indicated the higher probability of higher bottom to be formed above 6480. Bottom is trailed up at 6700 box value during last week. Double bottom sell signal from here will be triggered bellow 6690. This has not only assured large gains from the first buy signal but also made fresh longs affordable from here. Existing longs should remain in unless price forms Double bottom sell signal.

Figure 2 is 10 box value chart plotted with High Low prices. A Bullish broadening pattern is formed in the uptrend. The pattern is formed in this chart due to noise of high low charts. It is basically a Bearish bull trap pattern immediately followed by Bullish bear trap pattern. This is a bullish set up and current column of ‘O’ turning to ‘X’ will trigger an affordable fresh long trade. The pattern will be negated below 6650. Double bottom sell signal from here will not only negate the bullish pattern but also confirm the Relative High formation (High box value below upper band) which is a bearish event for short term traders.

I have discussed prior pre-election setups in the previous post.The current setup is bullish and we should keep finding reasons to trade long till it is trading above bullish line. A Double bottom sell signal from here would actually give an opportunity to trail the mini bottom up and generate fresh upper counts. We keep analysing the setups and various formations but everything eventually comes to ‘X’ when trend is up. Best methodology is to stick to what price is doing, stick to ‘X’.

P&F strategy for next week:

Remain long above 6690. Fresh ‘X’ is fresh buy trigger.

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

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.