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

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