This blog attempts to analyze movement of Nifty through the age-old Point & Figure method.
Weekly chart would imply the movement of Nifty for the weeks to come and not necessarily the immediate next week. Same is true for other time frame charts. As price action unfolds every week the charts speak for due course of action.
DISCLAIMER: NOTHING IN THIS BLOG SHOULD BE TAKEN AS TRADE ADVICE
Saturday, September 7, 2013
Nifty P&F (Wk 0909-1309) - In the resistance zone, support to come near 5420
Recap:
Pullback supported at 5320.
Weekly Analysis:
Daily Analysis:
Summary:
Weekly UP, Daily Up. Both hitting the BrRL. Expect some supply here. 5420 level should be important point of support.
These resistance / support points are also decision points. When most of the market participants expect some level as resistance / support, market often shows strength by gap up / down. Hence, a trader should immediately enter such a trade with the gap as stop loss.
In the weekly chart 5940-6020 shows as resistance band. Will do detail analysis in the weekend.
Dear Rajib,
ReplyDeleteIs VPO is still intact or count can be changed now If it crosses 5700 .
Regards,
Pinakin
@pinakin,
ReplyDeletetechnically yes still it gives a prominent buy signal.
However, breaking the recent low (5120) might not be that fast given the strong support shown at those levels.
You had asked sometimes back about value investing in stocks, this could be a good time where the risk:reward ratio will be good.
Regards,
Rajib
Dear Rajib,
ReplyDeleteNow market is making new high daily it now trading above 5700 on down side can we buy around 5700 area. Or wait for 5425?
Regards,
Pinakin
@pinakin,
ReplyDeleteThese resistance / support points are also decision points. When most of the market participants expect some level as resistance / support, market often shows strength by gap up / down. Hence, a trader should immediately enter such a trade with the gap as stop loss.
In the weekly chart 5940-6020 shows as resistance band. Will do detail analysis in the weekend.
Regards,
Rajib