Nifty Future Views!!!

Triangles are known to be very confusing and notorious till the time they give a clear breakout, and that’s the only way to trade them…you do get whipsawed but then that’s naturally expected out of triangles! Na me not giving a write-up on triangles, it’s just that we are witnessing a whole range of patterns and they are indeed Bullish and Bearish (depending which side you are on)!

Reminds of a quote, I have kinda added a few words to the original, so one can relate it with trading;

“Two men saw through BARS (pun intended), One saw the DUST (BEAR) the other saw the STARS (BULL)!!!”

Like I often say Pattern lies in the Eye of the Beholder, let’s take a very myopic view and start with a 5 minute chart of Nifty Future…why starting with 5 minutes chart? Coz it’s been frustrating the intra-traders! What we see below is a nice triangle (a 100 pointer) which has so far given two false HOPES (see ellipses)!

And now we move towards the Hourly chart; this where we start SEEING things!

From the chart above you have the following observations;

• Patterns Galore; we have a small Triangle (already mentioned above) and this triangle is in a Rising Channel and then of course we have a would be inverse HnS happening!
• We are trading right at 20/50 periods MA’s!
• The neckline (green dashed Line) of the WOULD BE HnS and the 200 periods MA are at 4915/20 approximately, posing as a stiff resistance, not to mention the GAP resistance above!

Does this all leave you more confused? It ought to, but if you are of the type that believes in “TRADE WHAT YOU SEE AND NOT WHAT YOU THINK” then things would be more lucid as all break out and break down levels are there in the charts and so are the STOPS!

Another word of caution is that we are into derivative expiry and presentation of annual budget! It’s meaningless to even assume or presume or forecast the direction of the market… the best would be to sit aside and watch the show. Remember that CASH also is a position!