I presume by now most of you would have realized that the 'supposed' neckline of the H&S pattern on the Nifty is broken; which I was expecting to happen since last four weeks.
Now the second test of the confirmation of the H & S pattern is a likely corrective rise to the neckline ; having once broken below it. In technical parlance, we call it a 'pullback'.
For the Nifty, this pullback should make it re-test the 4600-4630 levels in the next few days.
Intraday charts are showing signs of oversold position now (from today's move) and hence the pull back is a possibility.
Lets observe how the market behaves at these levels to get a further direction.
Happy observing
CA Rajiv D Khatlawala
5 comments:
Thanks for posting your analysis of the market. Is it wise to exit if nifty does a pull back?
SO now every rise will be a pullback and time to short right??? What would be the target levels of NIFTY?
I read about this post and was ready to sell my major stocks but then i revisited the charts and found that it is on weekly chart so it will take some week's time to give actual sell signal? I am little confused. On daily chart it also formed triple bottom so a bounce to say 4800 - 5000 level possible? What do you say?
I had one more doubt about pullback, I have seen some charts of H&S pattern and found that pullback happens only after a fall approx. equal to height of right shoulder i.e. according to me pullback will occur after nifty falling to say 4000 or so level.
I would also like to tell one thing that I am at learning phase and these doubts will help me and also other readers.
Thanks.
My target for the pullback was in the range of 4630 levels which was achieved today.
Regarding the question of when a pullback happens, the simpler way to appraoch the issue is to wait for the prices to re-test the neckline. It is not necessary that pull back occurs only after a fall approx. equal to height of right shoulder.
And yes - let the prices tell you what to do!!
CA Rajiv D Khatlawala
Post a Comment