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

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