Nifty P&F analysis: Bullish Engulfing!!

Bullish Engulfing!!

Date: 12th April 2015

 

Nifty last closing price: 8780.35

Daily chart

Figure 1 is 10 box P&F chart plotted with daily closing prices. Low Pole turned to Bullish Engulfing pattern when price closed above 8730 meaning that current column of 'X' has completely retraced previous column of 'O'. This has made setup bullish from neutral. Interesting point with engulfing is that one can trade it with stop placed at column reversal meaning exit longs if column of 'O' occurs from here. This makes trade affordable. It is interesting to see that 45 degree objective line has not tested even for once since Nifty has given breakout above 6330. Mid value of current column is reference point for bullish pattern which is placed at 8570 at the moment. Bearish column that remain above this level will add strength to the bullishness because next buy signal will activate count from current column of 'X' that will indicate direction towards 9600+.

 

Figure 2 is same chart plotted with 10 c Bollinger Bands. I shared this chart earlier also when price touched lower band recently. Price has again turned from lower band. Upper band is at around 8900 at the moment.

 

1 Min Chart

Figure 3 is 5 box P&F chart plotted with closing prices of every minute. Trend is up and counts up to 8930 are open. Support seems around 8700 and bearish signals can be taken only below that level on this time frame.

Figure 1: Nifty daily 10 x 3 cl Point and Figure Chart



Figure 2: Nifty dly 10 x 3 cl Point and Figure Chart



Figure 3: 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.