NIFTY FUTURE WEEKLY
The weekly chart has ended in a very positive way - biggest gain over the previous five weeks and close near the high of the week. This gives an impression that rally can continue - though it can, I have a different view. Readers are requested to refer the chart and see the notings on it. In the daily chart for Monday, I will post the same figures and let the market decide if the magic is going to work this time too.
Secondly, I have also drawn an Andrew's Pitchfork, which indicates that weekly price bar will be out of the Pitchfork once it is below 5350. On the daily chart, the lower level of the channel indicates that below 5400 will be bad. Both these figures are not too far from where we are today, if we are to get the contagious effect of the world markets.
In my daily post, I have been putting a level of 5545 as a strong resistance. In today's trading, Nifty Future Sept series did a high of 5544 - almost achieved the level, where as in the current series once again we managed a new high by only 3 points.
While the objective of my indicating bearish view for past one week or so, is just to caution the readers that at higher levels if one has sold, one can always buy at lower levels.
I am sure the weekly as well as Monthly candle next week will guide us if the market top is in place. In any case, we are near the upper end of the channel on the daily chart.
I would say that monthly candle will look bad, if the close by 31st Aug. is anywhere below 5350, and this will help to confirm my bearish view.
Have a nice weekend.
Ketan Asher.
Words of Wisdom
In life as in markets, chance truly favors those who are prepared to benefit.
Failing to plan, truly is planning to fail.
the graph does not explain exactly what it wants to convey. hence it would be better to post comments by explaining what is that 64 numerical and why. then a lay man will also understand the implications
ReplyDeleteSimply put 64 is a Square of 8 and as shown on weekly chart it has been an important turn date. Please refer Monday's chart and u will observe that Monday is 64th traing day from the previuos bottom. Will the top be in place? Only time can tell.
ReplyDelete