Low Pole!!
Date: 5th April 2015
Nifty last closing price: 8586.25
Daily chart
Figure 1 is 10 box P&F chart plotted with daily closing prices. Low Pole occurred with close above 8530 that we discussed during last week. This has made setup neutral from bearish. Price has not breached 45 degree objective line hence downtrend is not established and low pole in a uptrend is a bullish setup. But I prefer fresh double top buy signal after low pole to go long. Price going above 8730 in current column itself will trigger a long call as well. Bears need this low pole to be negated for trading shorts.
Figure 2 is same chart plotted with 10 c Bollinger Bands. I shared this chart earlier also when price touched lower band recently. It has turned multiple times from lower band in this uptrend and need to see if it will do it again to test the upper band.
1 Min Chart
Figure 3 is 5 box P&F chart plotted with closing prices of every minute. 8500 discussed during last write up achieved even during truncated week. Trend is up on this time frame. Currently it is testing the Anchor Point which may act as a resistance. Is this a nice affordable shorting opportunity? Should I short here being at Anchor Point? NO. Resistance is our assumption and we need to wait for pattern to give us a trade.
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| Figure 1: Nifty daily 10 x 3 cl Point and Figure Chart |
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| Figure 2: Nifty daily 10 x 3 cl Point and Figure Chart |
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| 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.
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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