Saturday, 17 September 2016

Nifty Next Week

As mentioned in my last post, it gave enough clues for breakout of consolidation on Thursday and it did actually break out.

Now lets move forward and analyse the prices, so that we can benefit from it next week.

Do you remember a month long consolidation of prices last month?  If you are finding it difficult to recall, here is the chart,
















As you can see, prices broke out this month long range towards the end of August 2016 and reached close to 9000 without retesting the breakout level.  Here you need to keep in mind the 8700 level.

Now lets concentrate on the latest chart and try to assess what is there for us next week,
















It retested the breakout level in the beginning of last week, traded around that level for 3 days and broke out on Friday, filled up the Island, and reversed.  Now since it was a big range day on Friday, on Monday we can expect a range bound movement within it.  If due to some reason it moves out of Friday's range, then the levels to watch will be 8750 and 8850.  If it breaks down below 8750 then will test 8700 for sure.  Now if it fails to hold 8700 during the week then most likely because of the fluid we can expect quick move towards 8550.  On the other hand, successful break of 8850 can take the prices towards 8950/9000 (all levels are of Nifty spot).

I was able to do all this analysis with only price action.  I did not require any help of indicator or moving averages or other studies.  Prices are everything and they tell us everything.  We just need to develop the ability of reading them.

3 comments:

  1. Thanks sir for presenting week forecast with help of PA, I think this is more credible thought as after market hr anyone can put BUY & sell arrow in chart

    ReplyDelete