Nifty Point & Figure analysis: Catapult a morning star?

Catapult a morning star?

Date: 28th Dec 2014

Nifty last closing price: 8200.70

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Daily chart is still in the non trading zone. Double top buy from here will form Mini bottom and trigger fresh buy that will also trail up the trend line. Level to trigger the signal is at 8330 at the moment.

1 Min Chart

Figure 3 is 5 box value chart plotted with closing prices of every minute. Trend has turned up on this time frame due to formation of Bullish catapult that took prices above bearish trend line. Bullish catapult occurs when Triple top is followed by Double top buy pattern which is considered as a strong buy signal. Counts up to 8250 are active for short term traders. Formation will get negated below 8170.

Though strength will be gained if this catapult results in negating the down counts and trendline formed around 8300 levels that will also turn daily charts to positive.  

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

 -  Prashant Shah, CMT, CFTe

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