Friday, May 23, 2008

Why I Think Nifty Target is 4685

There's a huge H&S that has formed on Nifty on the hourly charts. Now, many may not accept this as a classical H&S, due to the shape, but I think it can be taken as a formation. The left shoulder is clear, but we have a sort of contortion on the head. The right shoulder may be extremely weak, due to the conditions in the US markets at this time. Monday, any rise, will be shorted immediately and if we break the neckline, this H&S would get activated. The size of the head is about 300 points, and hence we could consider this as the target for the downside.

All of this is subject to two points: One, that this is a valid H&S, and two, that the neckline is broken to the downside. All the while, keep an eye on the volumes.



Posted by Bhoomi Trader at 9:58 PM

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3 Comments:

DIVYESH PALRECHA said...

sir,
this is kapil from palconindia
u r watching the hourly chart alos check the weekly chart and u may see the same happening their. we have bearish year 2008

May 24, 2008 at 9:34 PM  
johnny said...

Dear Kapil,

I saw weekly nifty, there is nothing like that. U watch MACD which is improving, though in short term I have already posted that 4875 will not hold, but I don't see nifty below 4875-4700.

Kailash Pareek Johnny

May 26, 2008 at 9:44 AM  
DIVYESH PALRECHA said...

sir ,
i request to check the link for the chart and what u say now
http://palconindia.blogspot.com
nothing personal i m being wrong 100 times before but know to accept it with small loss

July 8, 2008 at 9:22 PM  

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