Nifty Point & Figure analysis: 8840 activated!!

8840 activated!!
Date: 24th May 2015

Nifty last closing price: 8458.95

 

Daily chart (Medium - Intermediate trend)

Figure 1 is 10 box P&F chart plotted with daily closing prices.

 

·         Last Pattern: Triangle breakout, Double top buy after Low Pole, Variation of Bear trap, Mini top negated (All bullish)

·         45 degree trend: Bullish

·         Active count: 8840

·         Long exit level: 8290 (High pole level)

·         Short entry level: 8120

These levels will change with every formation of X or O. Long entry level will be trailed up with every formation of X. Double bottom sell signal below trend line occurring above 8120 will become short entry level.

 

1 Min Chart (Short term trend) 

Figure 2 is 5 box P&F chart plotted with closing prices of every minute.

Discussed triple top buy signal above 8275. Last week run has been very smooth with the help of 45 degree trend lines. Chart is bullish though some resistance seen around current levels. Supply can drag it down a bit but this was a third  attempt of anchor point breakout hence I expect previous resistance to act as support. Remain bullish till it maintains 8290 levels.

Mentioned that trade is coming. Basic signals are guide:)



Figure 1: Nifty dly 10 x 3 cl Point & Figure chart

Figure 2: Nifty 1 min 5 x 3 cl Point & Figure chart

 

 

-  Prashant Shah, CMT, CFTe

 

Disclaimer:
All information provided above is for general information purposes only and does not constitute any investment advice. The readers of this material should take their own professional advice before acting on this information.