Nifty Point & Figure analysis: Counts achieved..what's next??

Counts achieved..what's next??

Date: 1st Feb 2015

 

Nifty last closing price: 8808.90

 

Daily chart

Figure 1 is 10 box P&F chart plotted with daily closing prices. Upper counts till 8900 discussed during last write up has been achieved and stands closed now. Achievement of bullish count in an uptrend is not a bearish signal and indicate strength in the trend. Chart is bullish and trading well above trend line also above 20 column upper Bollinger Band now. Price going below  8620 will form High Pole and trigger exit signal for longs. Every 'X' before that would be bullish and give trading opportunities.

 

1 Min Chart

Figure 2 is 5 box P&F chart plotted with closing prices of every minute. Trend has turned down on this time frame followed by an interesting horizontal formation. This setup allow us taking horizontal counts. Vertical Count of 8640 shown in the chart is only an established count and yet to be activated. Looking at left suggests that 8860 - 8900 is a resistance zone. 8900 is Anchor Point of the toppish formation.

 

Downside counts are open on lower time frames but trend is up on higher time frame. Short term traders should stay away till both show the same thing. Invest time elsewhere till then!!



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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