LET THE MARKET TELL WHO WE ARE

On Friday NIFTY index settled at 12271.80 up by 1.53 percent on weekly basis. On weekly chart recently price has settled well above resistance line of a parallel channel with a partial gap suggesting that bulls are having upper hand. Price has been witnessing nice up trend and currently nifty is moving in CD leg of a bearish AB=CD pattern which gets completed at 12735.65. 14 period weekly RSI has recently placed a higher value than price made last top at 12103.05 in June this year. Higher value on RSI along with price making new high neglecting possibility of a bearish divergence on weekly basis. Weekly MACD has been staying in bullish territory along with a bullish cross above its signal line favoring bullish momentum and suggesting that there is more juice left in current move and showing potential for completion of AB=CD pattern based on weekly chart. However daily chart is showing lack of conviction and formed an identical shooting star on Friday. There is a tiny contr...

NIFTY spot has closed at 10831.40, and facing stiff resistance near 10931 zones which is the high placed on Monday keeping this index under pressure. Nifty has been witnessing a nice uptrend on weekly chart from low 6825.80 which was placed during March 2016. A classic bearish head and shoulder pattern is emerging on weekly chart and this pattern gets its confirmation on break of the neckline which is near 10000 zones. If this pattern gets confirmed then it will open the doors for a retest to flip support which stands near 8900 zones. Price is struggling to hold above 50 weeks SMA which equals to 200 SMA on daily chart. Price resistance near 200 days SMA plays a significant role. 10 weeks SMA has already given a bearish cross below 50 weeks SMA and this SMA on weekly chart equals to 50 days SMA on daily chart. These developments on SMAs suggests that a death cross has already happened in this index. Price has also violated a rising trend line and recently it has experienced res...

A simple yet powerful tool that I use every day in my trading. It’s called symmetry. Symmetry in market means equality when comparing swing in same direction. This technique helps me to project probable target or reversal point on chart. In February after budget session NIFTY index took a dip of 1219.65 points from top of 11171.55 to low of 9951.90. This time nifty has been in a nice down trend from 5 weeks and it has headed a low of 10547.25 in today’s session. If we subtract 1219.65 points from recent top of 11760.20 then areas of 11540.55 are the probable support as per price symmetry. However areas of 10540.55 are probable support areas and reversal can’t be expected exactly from that same level but it can be used as potential support area. On this chart I have drawn a horizontal line which is connecting multiple highs and lows which is also a significant area and rising trend line and horizontal line both are intersecting near 10460 zones which is also a crucial point to wat...

NIFTY is currently trading at 11282. A bearish AB=CD pattern has emerged on EOD chart of NIFTY index. Now this index is showing sign of reversal from 11390.55. Bullish attempt from low of 10419.80 to 11390.55 is equal to bullish move from low of 10105.40 to high 10929.20. Pattern has completed leg CD which is usually 100% extension of leg AB. Completion of leg CD marks a bearish reversal for this pattern. On price action front nifty has formed a spinning top near 100% extension of leg AB which increases the probability of this bearish reversal. Stability below 11400 will help bears to gain control and a primary attempt towards 11100-10930 zones will remain in focus. Further stability below 10900 will lead to further decline and any recovery above 11400 will invalidate our bearish expectations.  

This is the daily chart of #NaturalGas MCX which has closed at 202.30. Observation: recent #corrective move had taken place in a #falling #wedge formation which later resulted in a #bullish breakout. Recently this commodity is attacking at #psychological ceiling near 202 and at the same time it has established a move above 10 days SMA  which is also sloping upward suggesting a bullish environment for this commodity. Staying long can be a good #strategy as long as price manages to hold above 10 days #SMA which stands near 193. #MACD is near centre line and price stability above 193 will bring a positive cross on this indicator which will confirm bullish trend and momentum for coming days. Approaching winter season will also be a supporting factor for bullish expectations. Assumption: Dips towards 198-196 can be used for longs with stop of 193 for targeting 212-217-228 in near term . Hints: I have used trend line to observe market structure. 10 days SMA is used to observe trend...

Happy independence day!!! We are celebrating 71st independence day but what about financial freedom? Large number of people in this country give up their desire just because they can't afford. People who have batter financial management become wealthy in other words people who know how to make their money to work for them become rich and achieve financial freedom. No matter how hard you work, how much you earn if you can't manage your finance properly you would never achieve financial freedom. To prove my point let's take an example of two people. In early 2000 two persons, person 'A' and person 'B' employed in small shops in small town earning 3000 per month as salary. Person 'A' bought a colour TV which was costing nearly 25000 at that time and person 'B' bought a plot of 100 yards with that 25000 rupees. After 10 years that TV's value depreciated to 2500 from 25000 and that plot turned into an asset of 25lks... This is how properl...

Nifty spot is currently trading at 8565.55. This index has recently placed a top at 8968.70 which was 93.4% correction of entire bearish attempt from high 9119.20 to low 6825.80. Nifty has turned sideways near 88% Fibonacci correction of bearish move that presents ideal condition for a Bullish Bat harmonic pattern. Nifty price movement has already completed 3 legs of this pattern and now final leg ‘CD’ is in progress that completes near 88% correction of primary leg ‘XA’ which is placed at 5574. Based on price action Nifty, however, had recovered from 57% correction of bullish attempt from low of 5118.85 to high 9119.20 but failed to make a higher top to confirm continuation in longer term bullish trend and now it keeps chances alive for negatively biased sideways market. Nifty has been fluctuating between 8500-8900 zones from past few weeks and attracting buyers near the areas of 8500-8470 zones. Thus we can consider areas of 8470 as very strong support but a bearish cross on MAC...