Wednesday, 13 May 2015

13 May 2015: Nifty Elliott wave analysis: Possible inverse H&S pattern may form a support at 8100 levels. If breaks then no long.

You must read previous articles and watch the given chart carefully to understand this article completely.
For 13 May 2015: -

On 12 May 2015, FII Sold INR 1329.43 crs and DII Bought INR 1331.93 crs
I was expected a bounce from low yesterday but I never saw any bounce for whole day. Even low goes to a level which was not expected. Well, to some extent charting analysis says that there is a formation of inverse H&S pattern. One can refer to the chart given.
Nifty must respect 8100 levels as key support before 8000 levels. I believe that it was just one day sell off to wash weak bulls. if that’s true then also real challenge will emerge at 8350 levels.
For today’s trading session, I am expecting higher opening after yesterday’s massive sell off. I am expecting 8200 levels for today’s trading session. Can we expect 8350? Well, if we see close above 8200 levels then only we can see some hope. Right now, recovery is my hope which will get support from technical front if it can close above 8200.
80% chance is that we have tested a short term bottom on last Thursday only.
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Strategy for Nifty May future – We off loaded our long at 8270 yesterday and added again in very last minutes of trades. I am expecting opening above 8180 levels. If it can sustain above 8220 then only we can hope for this recovery to sustain. Technical support and stop loss will be at 8100 levels.     

S&P 500 (USA) – I was right that this index has no trade as of now. It is misguiding bulls and bears both. A down opening and then a recovery is just reverse of the day before. Technically, once again it is just a time to ignore for trades. If I have to favour then I can favour bulls based on short term chart but I do not trade. I still say that long term charts has different words. A long term top is under formation. 

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