Ride your 'X'!!
Date: 5th Jan 2014
Nifty last closing price: 8395.45
Wishing very
Happy and Prosperous New Year to you all!!
Daily chart
Figure 1 is 10
box value chart plotted with daily closing prices. 8330 discussed during last
write up is triggered. Double Top buy signal has marked the Mini Bottom at 8030
and trailed up 45 degree bullish trend line now drawn from the same bottom.
Interestingly, Buy signal is followed by Low Pole above the trend line
(uptrend) and activated count of 8900.
Is it the target with stoploss placed
at Double bottom sell signal to be formed below 8170 at the moment? I don't believe
in such theories. Well, Double bottom sell signal in an uptrend is a signal for
longs to exit. Ride the trend unless it is formed.
1 Min Chart
Figure 2 is 5 box value chart plotted with closing prices of
every minute. Catapult proved a morning star indeed!! This was a nice example
of important formation at lower time frames signaling the setups of higher time
frames and leads to larger degree counts. Chart at Figure 2 is continuation of chart
shown during last write up & it is sufficient to attract any observant eye.
Figure 3 is 10 box value chart of same time frame to look left &
check the resistance levels. Fib resistance and Anchor Point signals exhaustion
around 8375 which is well passed. Will price reverse from this resistance? Do
we have an affordable reversal trade from here? Should we book longs looking at
this? These thoughts are noise. Let Double bottom sell of High Pole form to
exit your longs. Ride the rally till then.
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- Prashant Shah, CMT, CFTe
Disclaimer:
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.
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.
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