Friday, October 28, 2011

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


Bullish undertone got converted to Bulls.

Weekly Analysis:

Daily Analysis:


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.


  1. Most powerful thing would be very simple. You prove that keep the good thing going.....Bala