Saturday, August 27, 2011

Nifty Point & Figure (PnF) Analysis - Week 2908 - 020911

Recap:

4710 on it's way.

Weekly Analysis:


Daily Analysis:


Summary:

Bottom near 4700. Bears target 4500.

PnF Fundamentals:

As I am not able to dedicate much time to add to my "My P&F Knowledge Share Centre", I thought I will add little bit of my P&F with fellow readers. Though I know there are not many PnF enthusiasts around, I hope to create few through my share.

PO (Price Objective):

Though I have talked about it earlier, but today would like to share a few more on this. This is a gift to the PnF followers to set a target for a position often. As the word says Price Objective, it sets an objective with a direction of the price movement. It does not necessarily talk about the target but all it means that the objective of a major reversal / pause is to normalize the market valuation to the desired level. There are primarily two types of PO - Vertical Price Objective (VPO) & Horizontal Price Objective (HPO). These are named so not merely from geometric distribution of the price but also from the psychological momentum point of view.

In my earlier topics I have covered the basics of VPO & HPO. So I won't get into the construct of them. Straightway I would start sharing my view point on these two techniques in PnF.

VPO is counted when the price changes the direction following a sharp movement in one direction (in EW this is often the v-th / c wave). HPO is counted when the price halts at certain level and becomes range-bound (in EW this is often the corrective phase). Having said, my experience is HPO is more effective in lower time frame charts compared to VPO, which is more effective in higher time frame charts. So avoid HPO in weekly chart and VPO in hourly chart. VPO is more target oriented whereas HPO is direction oriented. There can be minute VPOs within a large VPO, however, HPOs within HPO is not in my experience. In recent times my observations over VPO has been quite satisfactory (fellow readers can appreciate the accuracy of this technique). Later I will turn up with few more charts and explain.

Saturday, August 20, 2011

Nifty Point & Figure (PnF) Analysis - Week 2208 - 260811

Recap:

Past 5050 now at 4800!

Weekly Analysis:


Daily Analysis:


Summary:

The long-term BlSL from 2200 level of Dec'08 has been broken marginally. Another 160-200 points fall and PnF officially will announce a BEAR year!

Short-term support near 4710 level. A med-term (VPO) target 4500!

Sunday, August 7, 2011

S&P500 Point & Figure (PnF) Analysis - Week 0808 - 120811

This Week's Nifty P&F Analysis is here.


Daily Analysis:

Summary:

S&P amdist lots of structural change technically has warned many things, however has not broken the last hope yet. Rather giving an opportunity to the global economy to avert the impending recession. A long-term support line from 860 level is still holding intact. I am looking at an optimistic scenario where it is possible for S&P to revert from this level and the world markets react to positivism!

Nifty Point & Figure (PnF) Analysis - Week 0808 - 120811

Recap:

3 weeks back we read Bears' target of 5050 here.

Weekly Analysis:


Also see the long-term BlSL (Bullish Support Line) is critically aligned with our VPO for a possible turnaround!


Daily Analysis:


Summary:

Weekly DOWN. Daily paused. Pullback expected near VPO 5020 - 5050 level.