Nifty set to rally 1000 points! The pattern certainly suggest so.

#2


Sorry for the not so good chart post..

what i want to convey thru this post is that nifty after failing to break the prev all time high , was sold into heavily by institutions resulting in a fall of about 1000 points testing 5200 levels .

But it could not reach the 2011 lows of about 4800 , and it bounced back again to the all time highs , and after a short correction , it has formed a H & S pattern.

As per pattern trading theory , the target for trading this pattern is equal to the distance between the head and the necknile which is approx 1000 points .

So the target is approx 1000 points and i think it wont be too difficult considering that markets breaking into an alll time high will ensure participation from all market participants and lots of media hype and coverage.

In the 5 mnt chart , u can see a triangle pattern , what i believe is the neckline for this H & S pattern . It may break today or tomm .
 

shekharinvest

Well-Known Member
#3
The pattern you are alluding to as Head an Shoulder (Inverted), is not correct.

If you take a longer period, you will find the the said pattern in not a H&S. http://img842.imageshack.us/img842/159/z0wc.png

H&S is a reversal pattern. And what you are suggesting is a kind of continuation in trend.

You can read more about H&S here http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:head_and_shoulders_t


If you look a fresh look you will find it to be more like a Cup & Handle in formation as shown here http://img189.imageshack.us/img189/2932/p2r0.png Which I posted about 10 days back elsewhere.
 

whisky

Well-Known Member
#4
Is this rally going 1000 points down:confused::confused:
 

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