ANALYSIS FOR FEB 2

Intraday Update 10.30 AM:

Hour chart:

Day chart:

ANALYSIS FOR FEB 2:

Nifty closed at 5236 above the 200 DMA. Sustaining and closing above the 200 DMA is very important for furhter upmoves - as it has tested the Long term trendline/channel at the High of 5245.

Not only the channel joining the Highs has completed a channel, but the channel formed by closing values also has completed a channel.

The day close during the following sessions must close above the channel for futher upmoves. If the closing is within the channel - then a pause is likely for the upmove.

Weekly channel resistances: (for previous chart click here)

Considering the Harmonic Pattern, the Bearish Shark Pattern of the Day TF is continuing. The initial target of the Pattern is 88.6% of OX ( i.e - 5400 - 4639) which arrives at 5313.

ALL FACTORS POINT OUT TO CONTINUED BULLISHNESS - A REASON FOR TRADERS TO BE CAUTIOUS!! A HUGE BEARISH ABCD RECIPROCAL PATTERN HAS EMERGED.

BEARISH RECIPROCAL ABCD Pattern:AB - 5177 - 5944
C - 4531- greater than 161.8% retr of AB.
As per the pattern, C must be greater then 161.8% but less than 200%
200% of AB is projected as 4410
Projected D : must be above 50% retr and below 61.8% retr of BC
50% - 5237 - achieved.
61.8% - 5404

One can expect any shorting oppurtunity from 5300 - 5400. THIS PATTERN GETS INVALIDATED ABOVE 5405 - 5410 NS. 

FOR ANY LONGS CLOSE BELOW THE 200 DMA @ 5200 NS MUST BE THE STRICT STOPLOSS.

CHECK LIST-DAY
CLOSE	5236
PIVOT	5213	5 SMA	5176
HI EMA	5190	5EMA	5171
LOW EMA	5115	10EMA	5106
prev HI	5245	13EMA	5072
prev LOW	5159	26EMA	4977
100 DMA	4954	20 Hr MA	5157
200 DMA	5204	50 Hr MA	5115

AGGRESSIVE TRADES:

BUY ABOVE 5215 NS WITH SL HOUR CLOSE BELOW PIVOT 5210/ 200 DMA 5204.

SELL BELOW 5300 WITH SL 5320NS BASED ON THE INITIAL TARGET OF THE BEARISH SHARK PATTERN.