Nifty P&F analysis

Nifty P&F analysis

Date: 4th Aug 2014

Nifty last closing price: 7602.60

Chart 1 is 10 box value chart plotted with daily closing prices. Double Bottom sell signal in this chart was certainly a trigger for a medium term trader also to exit longs. It opened the small count of 7590 that is been achieved in the immediate column. Counts above bullish lines are considered weak but immediate achievement and overall formation has changed the trend from up to sideways.  Price remains above bullish line but a 6 column bearish trap formation has been formed

Chart 2 is 10 box value chart plotted with daily high-low prices. Sell signal occurred in this chart well along with a breakout horizontal count that signals 7420. But I would like to refer lower time frame charts for further examination.

Chart 3 is 10 box value chart plotted with hourly high-low prices. Last week chart is continued. Trap and high pole occurred at previous bearish formation levels confirming the supply. Activation of count of 7570 below 7740 was discussed in the last write up. It also falls near Anchor point of entire pattern hence reversal signal near that level would be an interesting setup.

Chart 4 is 5 box value chart plotted with closing prices of every minute. The count of 7710 acted nicely and price seen a sharp bounce from those levels which also took it above bearish resistance line. But follow through was failed and price again fell below resistance line. Waiting for signal after break helps a trader in scenarios like this. It formed the mini top that opened the count of 7610 which is already been achieved. ‘O’ is dominating the right side of the chart and price trading below bearish line hence in downtrend but near some support areas if looked at left. Price pattern confirming the reversal is always better than the falling knife.

 

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

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

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

Figure 4: Nifty 1 min 5 x 3 cl Point and Figure Chart

                      

 -  Prashant Shah, CMT, CFTe

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