Saturday, August 14, 2010

Nifty Point & Figure (PnF) Analysis - Week 20100816 - 0820

PnF charts are really good for important resistance and support level. However, a right entry or exit is really difficult. But with stocks this is far more easy.

This week onwards, I have developed a new application that zooms the chart to my desire and we shall be able to focus appropriately as and when required.

Weekly Analysis:

Weekly chart (40/3: e.g. 40 reversal points and 3-point reversal) does not show any sign of weakness. Still the upside is intact. Immediate support comes at the UP trend-line at 5340 - 5380. Weekly chart does not show any immediate resistance.

Daily Analysis:

Daily chart shows congestion at the top of the channel. A break-out or down is definitely on the card. If it's a breakout 5700 should be the eventual target. If it's a breakdown 5060, where the channel bottom comes should be the support.

Hourly Anlaysis:

Hourly chart also shows a triangular congestion, which is a bearish sign often. Strong support at 5360 which has been the support for the last whole week. Breakout has to come above the 5500 marks which is the contracting channel at the top.

Summary Analysis:

Weekly UP. Daily & Hourly congestion. Support 5360. Resistance same old 5500 - 5520.

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