We had a small gap up (what’s new???) anyway it was filled up within the first 15 minutes, followed by an attempt to make a new high. As usual we failed (we kinda doing this more often!!!). After that again it was down to splitsville!!! Maybe we wanted cues from Europe (actually I really don’t know why we went down???). Well then someone pricked the Nifty in the bottom and it surged upwards to make a V formation. But alas that prick wasn’t that forceful, we failed to take out the earlier highs. In the process we ended up making a Double Top…If that’s not bearish enough, then look what constitutes the second Top ….It’s a Bearish Head & Shoulders Pattern!!! (small one though…nevertheless a bearish pattern!!!).
Before you start screaming Sell…hold your horses…the story aint complete. This Technical Analysis thing is getting me hooked on. Below is the 30 minutes intra day chart of Nifty. What do you see??? Surprise! Surprise! It’s an Inverse Head & Shoulders Pattern in the making, an equally bullish pattern, opposite to what we are seeing on the 5-minute time frame. This pattern if completes, it gives us a target of 160 points (4950/60 in nifty, which anyways is a strong resistance for now).
Technical Analysis is all about probabilities and not certainties. Here’s a parting note, if you observe an H&S Patten, you will find that every H&S Pattern, has a Triangle in it. And triangles are treacherous.. they have a mind of their own… you never know exactly which way they are going to breakout. Therefore we should always wait for confirmation in Price to take any further direction.
‘‘It is a profound mistake to think, the horizon is the boundary of the
Antoine Marin Lemierre
2 comments:
thnx manoj for sharing what u see. btw loved the signoff quote.
pradeep
Hi, I am glad u liked the post.Its just an effort to maintain notes for myself..in the process if they help others then why not!!!
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