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.
