Nifty P&F analysis: 'O' struck. Bearish counts activated!!

'O' struck. Bearish counts activated!!

Date: 15th March 2015

 

Nifty last closing price: 8647.75

Daily chart

Figure 1 is 10 box P&F chart plotted with daily closing prices. Price went below 8840 and setup turned bearish. It has generated bearish Double Bottom Sell pattern below 8690. It has occurred immediately after High pole formation hence a signal to trade short though price is still above bullish trend line. Bearish count of 8410 is active at the moment. It has also formed Relative High being sell signal formed below upper band after 'X'  going above it. Price closing above 8780 will turn it to bullish again and indicate SAR (Stop and Reverse) trade.

 

1 Min Chart

Figure 2 is 5 box P&F chart plotted with closing prices of every minute. Price immediately went below 8890 and came all the way to mark bearish box at 8635. Price is trading below bearish trend lines hence trend is down. Last pattern is quadruple bottom bearish pattern that has activated count of 8535. Two H&S kind of bearish horizontal patterns are marked in the chart that suggests counts around 8435. Chart is bearish unless the peak of second bearish pattern placed at 8830 is broken. 



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    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.