Nifty-EOD Chart (01-Nov-2012):-
Technical Patterns and Formations in EOD charts
1- 24 Sessions sideways trading between 5633.90-5815.35 from 24-09-2012 to 29-10-2012.
2- 24 sessions most time trading between 5639-5733.
3- 24 sessions range forcefully broken down after RBI Credit policy announcement and closing below 5633.90 on 30-10-2012.
4- Nifty again moved and closed above 5633.90 on 01-11-2012.
As break down confirmations was required therefore Following lines were told same day on 30-10-2012:-
1- firstly break down validity confirmation is required through following 2 filters:-
1- 3 Days sustaining below Neckline and/or
2- Slipping 3% below Neckline.
2- Firstly understand the validity of correction and get confirmation through above mentioned 2 filters
As Nifty closed above 5633.90 today therefore break down of 30-10-2012 has not yet proved valid and final sustaining it beyond will mean following moves:-
1- Sustaining above 5633.90 will mean reentering into 24 Sessions trading range after false break down.
2- Sustaining below 5633.90 will mean deeper correction after final breaking down of 24 sessions sideways trading range.
Sustaining beyond 5633.90 should be firstly watched for the confirmation of depth of correction
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1- 24 Sessions sideways trading between 5633.90-5815.35 from 24-09-2012 to 29-10-2012.
2- 24 sessions most time trading between 5639-5733.
3- 24 sessions range forcefully broken down after RBI Credit policy announcement and closing below 5633.90 on 30-10-2012.
4- Nifty again moved and closed above 5633.90 on 01-11-2012.
Conclusions from EOD chart analysis
As break down confirmations was required therefore Following lines were told same day on 30-10-2012:-
1- firstly break down validity confirmation is required through following 2 filters:-
1- 3 Days sustaining below Neckline and/or
2- Slipping 3% below Neckline.
2- Firstly understand the validity of correction and get confirmation through above mentioned 2 filters
As Nifty closed above 5633.90 today therefore break down of 30-10-2012 has not yet proved valid and final sustaining it beyond will mean following moves:-
1- Sustaining above 5633.90 will mean reentering into 24 Sessions trading range after false break down.
2- Sustaining below 5633.90 will mean deeper correction after final breaking down of 24 sessions sideways trading range.
Sustaining beyond 5633.90 should be firstly watched for the confirmation of depth of correction