Wednesday, January 18, 2012

Nifty patterns revisited

In an earlier post, I had pointed out two different patterns in the Nifty –First, an ascending triangle which was already confirmed, giving a target of 5070 approximately, and, second, a bearish rising wedge which was under construction.

 

After I wrote that post, the Nifty has continued to move up, which touching 4970, up from 4800 which was the breakout point. It is anybody’s guess if the targets for this pattern will be achieved. The stop for this trade is 4800 – breakeven. Short term traders cannot have such a wide stop, and, they must manage the trade with their risk management principles. I have closed the long trade at 4970 approximately. I am a short term trader, therefore, my risk profile is also designed to take minimum risk.

 

I am giving below the Nifty chart with both the patterns separately identified. Thanks to the sharp rally on Tuesday, the resistance line for the rising wedge has to be redrawn. 

 

nifty-asctriangle-jan12

 

nifty-bearish-wedge-jan-2012

4 comments:

Tomichan said...

Take banknifty 8900 put in a hurry to get back my capital. Hoping to change position on final hours of friday. I fears, but unsure of the jan 24th policy meeting mania may take its toll more agressively and positively next week in our indexes. But america can easily reverse from the current level and india may nosedive alongwith. Really, is it a no trade zone master? Even with buyback plan, RIL CAN make nìfty nosedive on friday. Without that news, we could easily touch 4850 today. All other stocks are ready to accept hammering after the current upmove. In masters chart, nifty has to fill up some blanks before reversal. Salute master.

Naran said...

U.S. stocks advanced to six-month highs Wednesday. S & P CLOSED ABOVE 1300 !!! BULLISH PATTERN MAY CONTINUE ?

Tomichan said...

switched to minifty 5000 put. Not much downside before expiry? If i follows the technical calls and master's advice this month, i could have triple my capital. That thought gives me confidence to participate from the next directional call. Today morning master told on cnbc that will take long position if nifty crosses 5000. That inspires me a lot. I may fear to take a long at this level. The target is 5070. The message is clear. If u follows chart, follow it wihout hesitation. If u follow ur imotions...
Salute master.

amarjeet said...

Respected sir,
if we see weekly charts higher highs above 5400.so why trend is change above 5100 on daily charts. please explain.