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.

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.

Nifty - Point & Figure analysis

Oversold!!

Date: 14th June 2015
 
Nifty last closing price: 7982.90

Daily chart (Medium - Intermediate trend)

 

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

·         Last Pattern: Double bottom sell (Bearish)

·         Last Column: Bearish

·         45 degree trend: Bearish, At one 45 degree support line

·         Active count: 7630, 7480

·         Short exit level: 8130

  

8060 and 7930 both discussed during last week are achieved. More downside counts are open & price action in bearish. Bear trap will occur if price closes above 8130.

 

1 Min Chart (Short term trend)

Figure 2 is 5 box P&F chart plotted with closing prices of every minute. Lower counts up to 7900 are active. Chart is not bullish but Bear trap indicates support taken by price at 7945. Recovery is expected during coming week if these support levels are maintained.

Only 9 stocks from Nifty 50 are bullish on 1% box value at the moment. Bullish chart is where last signal is Double Top Buy signal. P&F breadth indicator 'Bullish percent' count the number of bullish and bearish stocks that provides clue for medium term trend. Reading below 20% is oversold zone. Current reading at 18% indicate that immediate downside is limited.

X-percent is another breadth indicator for short term trends. It calculates number of stocks where last column is 'X'. Current reading of this indicator is at 20% that suggests market is oversold even for shorter term.

This is not to call a bottom but to discuss the possibility of a meaningful bounce in short term. Certainly this cannot be traded unless price confirm.

 



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



Fig 1: Nifty1 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.  

Nifty P&F analysis

Date: 7th June 2015

 

Nifty last closing price: 8114.70

 

Daily chart (Medium - Intermediate trend)

 

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

 

·         Last Pattern: Double bottom sell after column consolidation (Bearish)

 

·         Last Column: Bearish

 

·         45 degree trend: Bearish

 

·         Active count: 8060, 7930

 

Price turned down with column 'O' that triggered long exit level of 8310. Follow up bullish signal did not occur above bullish 45 degree line and price again went below breakout line. Hence we need to look for bearish counts those are active. 8060 and 7930 are active counts from mini tops. Last box value is at 45 degree line support level. Fresh 'O' is required to active short trades from here.

 

 

1 Min Chart (Short term trend)

 

Figure 2 is 5 box P&F chart plotted with closing prices of every minute. As shown in the chart down trend from 8465 to 8100 was formed without even a mini top on such lower time frame. That was steep and strong downtrend. Treat for trend followers. Currently some base formation seems to be happening where both side counts are active. 8045 is active at the moment and 8285 will gain strength above 8170.   

 

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.

Nifty P&F analysis: Status quo, reversal level trailed up!!

Status quo, reversal level trailed up!!
Date: 31st May 2015

 

Nifty last closing price: 8433.65

 

Daily chart (Medium - Intermediate trend)

 

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

 

·         Last Pattern: Column consolidation after bullish patterns (Bullish)

 

·         45 degree trend: Bullish

 

·         Active count: 8840

 

·         Long exit level: 8310     

 

These levels will change with every formation of X or O.

 

1 Min Chart (Short term trend)

Figure 2 is 5 box P&F chart plotted with closing prices of every minute. Resistance and support levels shown last week has worked well. Price respected both the levels. I always feel that Anchor point is most underused tool of P&F world.

 It's a status quo. Formation remain bullish and only development of the week is that reversal level trailed up for long exits.

 



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



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



Fig 3: 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.

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.