It has closed positively at 3148 indicating a break out on the closing price chart (line chart).
But what is interesting to note is the pattern being formed on the daily chart - an inverse head and shoulder reversal pattern. This is a pattern which has the potential to 'reverse' the down trend.
The neckline seems to be near 3175 above which one should expect further up moves - initially to 3325 and then beyond 3500. (Phew !!)
Moreover I expect the 'speed' of the rise to be faster since the Nifty has taken only a small retracement to the 38.20% level. ( You may refer my book for more discussions on retracement analysis and speed of a move)
While most news reports / analysts keep indicting us about the bad news ; the market wants to rise . I presume once again, the market is discounting the future - as usually it does!
Happy trading
CA Rajiv D Khatlawala
Head of Research and Training
Jhaveri Securities Ltd.
5 comments:
Hello Sir,
Just today at 4:30 I had discussed with you about this Inv H&S and you have posted it in your blog.
Thanks for raising my confidence.
Thanks & Regards.
Piyush Goyal.
Dear Sir,
Does yesterday's fall change the Inverse H&S pattern and falter the upside potential it has.
Your views please..
Thanks & Best REgards
Vipin
The recent fall would negate the inverse H & S only if 2640 is broken.
Today's fall suggest that the rise after the break out of the neckline (when it happens) would not be fast but rather a slower rise.
Best Regards
Dear Sir,
Thanks for your reply... your analysis is really helpful.. i have just started reading your book and wanted to know if you take any classes were i can learn more on stock market analysis..
Best Regards
Vipin
Sure Vipin,
Yes , I do have various courses on technical analysis, Derivatives as also on fundamental analysis.
They are conducted at Baroda
In case you are interested please email me at rajivkhatlawala@yahoo.co.in
Best Regards
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