Where is the NSE Nifty 50 headed?

Traderji

Super Moderator
#1
Is the NSE Nifty 50 headed for 1750?

See attached chart below:

Description and analysis of attached chart
If one draws a trendline connecting the three swing lows one gets a upward sloping trendline. Drawing a parellel trendline to this line gives us the target for the upmove.

The trendline is a primary tool of technical analysis and the channel line a secondary one.

When constructing a channel line, it should be drawn absolutely parallel to the basic trendline or at minimum very close to parallel. A channel line sloping at one angle, while the trendline is sloping at another, is not correct and can lead to misleading conclusions.

When drawn correctly, the channel or return line represents the point at which reactions start against the current trend. The trendline and the channel line together define the area called the trend channel or simply the channel.

The failure to reach a channel line provides warning that the current trend is losing strength. If, on the other hand, a stock breaks out of the channel line, it is a sign the current trend is accelerating.

A channel line is a secondary tool to the trendline. When drawn properly, however, it can benefit the swing trader in identifying support or resistance. It can also help you gauge whether when the trend is losing steam or accelerating. Construct channel lines effectively and they can be an important part of your technical analysis toolkit.

Have a question please post them here.

Attn: Technical Analyst: can you please post images of other indices or stocks forming a similiar pattern? I would appreciate if more members would participate in this forum as a community.
 

Attachments

#3
Good one Traderji,

I bought some Nifty Futures based on this one call and it has worked.

As Neal says I am going to tighten my stoploss now.
 
#4
BANG ON TARGET AGAIN Traderji!

Nifty hit a HIGH of 1740 today.

Keep up the good work. I am sure many members of this forum would have benefited from this knowledgable analysis.

At least I DID!

Your simple and effective style of analysis makes trading and earning in the markets seem easy.

Thanks Again.
 
#5
Good write up traderji!

One will have to wait and see what the market does from here on!!

Any ideas or comments as to the future direction?
 
#7
Traderji,
Excellent forecasting on the way up,and thanx again for forewarning us as we head towards the bottom end of the channel.

Saint
 

sh50

Active Member
#8
Very informative write up no doubt. Want to clarify:-

In the first chart, you are advocating the buying at then current levels with the price objective of 1750( Resistance) Stop loss is at point 3 or previous lowest low.

In the second recent chart you advocate short selling with price objective at the intersection with the trendline and stop loss at the intersection with the channel line. Right?
 
#9
Traderji, that's a great call, but there's something I don't understand. Looking at the current scenario, where is the Nifty headed, now that it is consistently hugging the upper edge of the channel line, and yet refuses to cross 1825 with any strength? Is this similar to a blow-off? What's a blow-off exactly?
 

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