Nifty Analysis - Point and Figure Charting Method: October 2011

Saturday, October 29, 2011

Most of the world markets have breached BrRL

Click here for this week's Nifty weekly analysis.

US Markets:

DOWJONES Broken BrRL. Approaching resistance near 12370!

S&P500 clear break-out. A channel top still to offer resistance.

NASDAQ broken BrRL. Gradually approaching the channel top.

Europe:

FTSE though broken BrRL might form an H&S pattern!

Asia:

NIKKEI too formed a bottoming pattern. However, the market is in long correction mode.

Friday, October 28, 2011

Nifty Point & Figure (PnF) Analysis - Week 3110 - 0411

Recap:

Bullish undertone got converted to Bulls.

Weekly Analysis:

Daily Analysis:

Summary:

All Bulls. Daily near resistance zone at 5430. Week near resistance zone 5460 >> 5540. A pullback from this should be good opportunity for some medium-term equity investment in some large cap stocks.

P&F once again proves that a simple price action is good enough to identify trend / range and reversal. Though it will take the weekly chart to signal a complete reversal, but the daily chart is showing good amount of reversal. A few points in support for the reversal:

A spread daily bottom and a plain double bottom at 4720.
This bottom coincides with 38.2% Fib-retracement
It has been a year (Oct'10 to Oct'11) for one cycle of correction.
Some large cap stocks are bottoming out.

If this is a reversal confirmed, we are heading for two targets: HPO of 5700 and VPO of 5940. Incidentally these are respective tops of previous up legs.