Nifty Point & Figure analysis: Bullish & Overbought!!

Bullish & Overbought!!

Date: 28th June 2015

Nifty last closing price: 8381.10

Daily chart (Medium - Intermediate trend)

 

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

·         Last Pattern: Bear Trap, Bullish engulfing (Bullish)

 

·         Last Column: Bullish

 

·         Long exit level: Negative column reversal

 

·         45 degree trend: At 45 degree resistance line

 

1 Min Chart (Short term trend)

 

Figure 2 is 5 box P&F chart plotted with closing prices of every minute. Trend is bullish but at resistance. Anchor Points placed at 8270 and 8130 levels are reference levels if price corrects from here.

 

I discussed Bullish Percent P&F Breadth indicator of Nifty when it was below 20% & in oversold zone. It is at 42% currently meaning 21 stocks from Nifty 50 are bullish.

 

X-percent which is a breadth indicator for shorter term has entered in overbought zone of 80%. Meaning that Current column is bullish of 40 stocks from Nifty 50 on 1% box value. It indicates short term column consolidation or some price correction.



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



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. The readers of this material should take their own professional advice before acting on this information.