Nifty Point & Figure analysis: 'X' reasserts control!!

'X' reasserts control!!

Date: 19th Jan 2014

Nifty last closing price: 8513.80

Daily chart

Figure 1 is 10 box value chart plotted with daily closing prices. Buy signal followed after Opposing Poles formation when price closed above 8330. We discussed during last write up to wait for next basic signal after such kind of pattern. Upper counts of 8740 and 8900 are active on this time frame and bottom is trailed at 8110. Exit long signal level currently placed at 8400 which is mid value of current column of 'X'. Interestingly, Nifty has never gone below 45 degree bullish line on this chart since September 2013.

1 Min Chart

Figure 2 is 5 box value chart plotted with closing prices of every minute. There is a series of bullish signals above trend line. Trade above 8530 from here will activate upper count of 8650. Trendline from mini bottom is placed around 8400 levels which can be treated as a stop for short term long traders. 'X' is back on all time frames. Keep looking for fresh buy signals.

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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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.