Nifty - Closing Chart ( Line Chart)

Many of the blog readers have asked me about the importance of a closing price - relative to the OHLC charts. It is for this reason that I am tempted to evaluate the Nifty Closing price chart in the current article.




The above is the Closing price chart or line chart which plots the Daily Nifty closing price ; without depicting the High / Low and Open of the day.

You may observe that in the current move , the Nifty has taken support at the trend line joining the higher closing lows. Accordingly a close now below 4950 will break the trend line . Till then , the chart indicates sideways move - especially as the MACD has given a sell signal by crossing its signal line.

The above chart indicates that the momentum is falling and hence taking positional trades for a few days may not be a prudent strategy!

Happy trading

CA Rajiv D Khatlawala