Nifty opened negative with the gap of 65 points, it opened exactly at the support line of the Expanding Triangle. It started moving up for closing the gap. It formed a good ABCD pattern and it reached the first target. After reaching the target of this Pattern again nifty bounced back to new highs. Below is the 5 min chart of Nifty Futures
Cues For Today (June 24th):
Sustaining above 4200/4210 levels shows strenght in Nifty, longs could be held with tight stop loss. On the higher side 4390/4400 levels may give strong resistance. Nifty ended at the resistance trend line joining from 4700 towards 4520. If tomorrow this resistance line is taken out the Nifty may show some more strength.
On the lower side Gap is not yet closed completely, so today’s low may act as crucial support, below which price may reach up to support line of Expanding Triangle. Below is the 15 min chart of Nifty Futures:
On the chart we can see a wedge formation from 12th June high’s to the today’s lows as shown in the below picture. This Falling wedge has got big empty space in between the first two waves and may not be perfect for trading. Instead it is safer to consider the resistance of this wedge as a simple trend line which may play major role for tomorrow's trade. Below is the 15 min chart of Nifty futures showing wedge and Expanding Triangle:
4 comments:
Very good detailed analysis DOJI.keep it up.
http://moneyvistas.blogspot.com/
Hi doji ,
came to know about importance of empty space in falling wedge for the first time.
Thanks
I second it. Best place to learn pattern trading with real time charts... :O .. make it a paid blog :D ... Jokes apart, your each chart is full of info stuffed inside.. keep the show going.
-Satyam.
@MONEYVISTAS,
Thank you
@renu,
Thanks, empty spaces make these triangle patterns some what inefficient. So need to be play carefully, specially when the risk/reward isnt very good.
@Satyam,
Thank you. May be I should try and put some ads, I may cover some brokerage atleast :)
-Doji
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