Nifty P&F analysis: Price below 45 degree!!

Date: 26th April 2015

 

Nifty last closing price: 8305.25

 

 

Daily chart (Medium - Intermediate trend)

 

Figure 1 is 10 box P&F chart plotted with daily closing prices. Price has gone below 45 degree line for the first time since breakout of 6330. Downtrend is established and setup has turned negative with open lower counts of 8120 and  7930. Double  bottom sell signal followed by High Pole formation is signal to trade short. Stop for short trades is at 8430 at the moment. 'O's become dearer in downtrend and resistances are to be looked at instead of supports.

 

Figure 4 is backtested numbers of current negative setup below 10 column moving average in Nifty. It has worked 85% of time. 

 

1 Min Chart (Short term trend)

 

Figure 3 is 5 box P&F chart plotted with closing prices of every minute. Trend is down with Anchor points placed at 8405 and 8430 which are expected to act as resistance.  

 

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 dly candlestick chart

Image 1: Backtesting numbers of negative setup in Nifty

-  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.