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

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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.