Tuesday, June 8, 2010

Nifty Rising Wedge

7 comments:

kk said...

RESPECTED SIR
I AM THINKING THE OTHER WAY , FOR ME NIFTY WAS IN A DOWNWARD WEDGE FOR THE LAST TWO MONTHS. ON 3rd JUNE IT BROKE OUT, WHAT HAPPENED YESTERDAY WAS A SMALL THROWBACK AND NOW IT SHOULD RESUME IT'S UPTREND . NOW THE PROBLEM SHOULD ARISE ONLY WHEN IT GOES BELOW 4950 WHICH WAS IT'S RECENT LOW.

kotesh said...

Sir,

What would be the range of the nifty (most probably) for the next 2-3 years in worst and best conditions?

Kots

kotesh said...

Sir

If u observe Nifty stocks, while some(about 10) stocks are with in 10% of their year high, there are some other stocks (about 10) which are with in 10% of their year lows.

Does it mean anything?

Does it mean that NIFTY neither moves up nor down substantially for the next 6months to 1year?

Kots

Bhavin Chotai said...

respected sir
the nifty made a high of 5399.65 on 07.04.10 and ADX also made high of 39.16. On 26.05.10 nifty closed at 4917.4 and ADX value was 32.69. If we join the two tops of ADX we realize that the current trend in nifty(i.e down trend) is a weak trend. Thus this downtrend may be about to end and we may enter into:
1. trending market(either uptrend or downtrend) if ADX bounces back and moves above 32.69 or
2. trading market if ADX continues its downward journey or moves sideways.
Also MACD has generated a buy call on 01.06.10. Thus according to my system i should go long on nifty.

Contradictorily, if i join the top of nifty on 07.04.10 and 13.05.10 and draw a trend-line, on 01.06.10 nifty faced resistance at that line. However, it broke the resistance on 03.06.10, but it again came down below this line in the next two trading sessions. Thus showing that nifty is facing resistance & until nifty does not surpass the high of 13.05.10 i.e 5210(approx) i should not go long.

Kindly explain the shortcomings of my system.

Gindi Singh Dhillon said...

Sir as per my knowledge, it needs at least 3 months for any chart pattren from start point to finally break point. If its duration is not around 3 months, its not considered genuine reliable pattern. Only flags n penants r formed over weeks but rest of patterns should be formed over 3 months. Correct me if im wrong, thnx

Nitin said...

Thanks for the chart.

dynamicjag said...

Sir, applying Elliot wave count to the chart it(rising wedge) seems like 4th wave which has pulled back 62% of the fall and we are again heading downwards below 4785.