Nifty Point & Figure analysis

Date: 22nd June 2015

  

Nifty last closing price: 8224.90

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

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

·         Last Column: Bullish

·         45 degree trend: Below bearish line, Bounced back from 45 degree support lines with bear trap formation

 

 

Bullish engulfing is pattern when double top buy signal & Low Pole formation occur in the same column. It is signal to trade long with stoploss placed at column reversal.

Bullish percent and X-percent breadth indicators discussed during last write-up worked well. Market bounced from oversold zones. We discussed about meaningful bounce. Interestingly, P&F target of 7930 is exact bottom of current move. Associating price setups to breadth is effective trading strategy.

 



Fig 1: nifty dly 10 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.