In the morning hrs Nifty was moving in sideways direction while it closed the opening gap with low volumes. Formed a good symmetric triangle giving an opportunity for entering trade. Short entry at the symmetric triangle breakdown was the best in today’s trading. Later Nifty broke the Support trend Line of Inverted Cup and Handle with big volumes, confirming the further down move. Also there was a head and shoulders pattern formed in the handle part and the neckline of that pattern is exactly at the same point of the Inverted Cup and handle support line.
Nifty reached the target of the head and shoulders pattern and symmetric triangle pattern in intraday. While reaching the target of the head and shoulders it made a flag pattern and reached the target for that in intraday itself. Below is the intraday 5 min chart of Nifty Futures:
Cues For Today (June 18th):
At the end of the day volumes increased drastically forming a parabolic shape, which is indicating some up move could be possible. And also now price came near to the support of the expanding triangle. Partial pull back is very much possible but NIfty may come back to the lower levels as bearishness is clearly visible. If price breaks the support of the Expanding Triangle with volumes convincingly then the next target will be height of the expanding triangle.
On the higher side 4390/4400 may act as resistance. Above that, Nifty may go and retest the cup and handle resistance line.Below is the 15 min chart of Nifty Futures:
3 comments:
Doji, Thanks for Your excellent analysis.
I have a suggestion(if possible to implement without much effort), Please indicate the values of targets, like height of the expanding triangle, support line, cup and handle resistance line etc.etc. As your followers like me who are not using any online software find it very difficult to know these values.
Thanks and Regards.
ttthakur
hey. just started visiting ur blog day before. awesome. amongst the few indian tech analysis blogs which write sensible stuff with awesome charts rather than lots of useless crap.
thnx for the intraday data as well. havnt used it as yet. will start off. can you create a separate nifty futures file.
thnx :)
@tttahakur
Thanks for the suggestion, if the value is static I do mention it, but if the resistance/support follow a trend line then it is difficult to write the exact values as they keep changing by time based on the slope of the trend line. And it is same with the targets. When the breakout happens, the height becomes static that time will mention. If you can use any charting software and draw the trend lines it will defiantly help.
@Pi
I am glad. Thanks for the appreciation. If you click on Nifty label on right side u find all the nifty posts. Below is the link
http://www.chartreader.co.in/search/label/Nifty.
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