Namaste - My Learning of Trading in Nifty

[crown]

A probable Head and shoulder in Nifty, which seems very likely since as I am writing this, Dow is down 130 points. If HSI is down tomorrow, Nifty will break the neckline.

Josh1

Dow covered reasonably and HSI is also not down
Hope Nifty maintains the support levels

 

[saivenkat]

Dow covered reasonably and HSI is also not down
Hope Nifty maintains the support levels

Dow not down.. ok..

HSI not down.. ok..

MY CONFIDENCE IS ALSO NOT DOWN... :clapping:

 

[crown]

seems support of Nifty is moved slightly up
now the support appears to be at 6000 levels

 

[saivenkat]

Today "METALS" are pulling the market down. ( -119 points)
If they slightly support,in either way, by short covering or +ve news, then nifty bulls will be back in the race.

 

[crown]

Even if Nifty maintain the support level, that is enough for the bulls

 

[Priya601608]

Nifty closed at 5987.7

Cheers,
Priya

 

[Priya601608]

Friday nifty may close near 6040-6050

 

[josh1]

Nifty did not fall decisively below the neckline (5978) of H&S formation yesterday. today the neckline is at 5982. Hence there is some hope for the bulls.

 

[MindlessTrader]

crown bro,...can you post here....
nifty spot 5 min chart dated 26 august 2010 and 29 july 2010...thanks.....

 

[josh1]

On a closer inspection of the charts, I find that there are actually two shoulders on each side and two necklines. First one which is drawn by joining bottoms of 30th September and 18th October was at 6003 and it was broken decisively yesterday. The volumes had been falling from left shoulder to the right shoulder. This is a typical characteristic of H&S formation. Note the huge volume on breakout yesterday, though this is not necessary for H&S top. (Market can go down because there is no buyer at high price).

The distance measured from top of the head (6284 on 14th Oct) to the bottom of head (5985 18th Oct) is 299 points. Break out was at 6003. I therefore expect nifty to fall up to 5704 which is minimum implication of H&S formation.

The 50 DMA is currently placed at 5834. Therefore a pullback from 5870-6000 to the neckline is possible.

Since the H&S formation is not visible in weekly charts, I do not expect it to have a severe impact lasting more than a month or two.

These are my observations. I welcome criticism if I have erred on technical details.