Mini Top at 8330!!
Date: 10th May 2015
Nifty last closing price: 8191.50
Daily chart (Medium - Intermediate trend)
Figure 1 is 10 box P&F chart plotted with daily closing prices. Reversal level of 8290 got triggered earlier during the week. And price turned down again by going below 8180 that generated fresh double bottom sell signal. The formation (Immediate sell signal) has marked Mini Top at 8330 which is trailed down from 8830. Chart will not turn bullish unless price closes above this level. Low pole formation at last column has called for exits to short trades hence trade signal is neutral at the moment. I expect column consolidation from here. Close above 8330 will also generate bullish engulfing formation that calls for long with stop placed at column reversal.
1 Min Chart (Short term trend)
Figure 2 is 5 box P&F chart plotted with closing prices of every minute. 8315 count discussed during last week got achieved immediately to my surprise. But trend resumed downtrend then and achieved all counts activated from Mini-tops as shown in the chart. Friday bullish engulfing column from box value 8000 marked the bottom and activated 8225. Trend has turned up on this time frame. Anchor point resistance is 8270 - 8280 levels and support is placed around 8070.
Interestingly, I saw only 4 charts were bullish among Nifty 50 on last Thursday on 1% box value. Bullish percent is P&F breadth indicator which calculates ratio of bullish P&F stocks in an index. Extreme levels are used for contrarian approach. 8% (4 from 50) indicates trend exhaustion. I am working on back dated entries and soon will present the historical Bullish percent chart of Nifty.
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| Fig 1: Nifty dly 10 x 3 cl Point & Figure chart |
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| Fig 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. 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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