NIFTY ANALYSIS
Hello everyone, I hope last year was profitable for everyone or if not at least everyone managed to preserve their capital seeing the volatility.
Today I am here to share my insights on Nifty and what I think the coming month might give us, so let’s understand my thought process on the same :
PATTERN CONSTITUENTS :
The particular pattern consists of 2 Shoulders and a Head. In terms of volume, it is the highest when Left Shoulder is former and decreases as and when the pattern forms.
ANALYSIS :
Keeping in mind that we will stick to the pattern which we have identified, first step is that we will wait for the breakout to take place on an hourly candle and once it gives a close the probability increases of the pattern completing.
LEVELS IDENTIFIED :
I’ll teach you how to identify levels using this pattern, we need to identify our Neckline which is the Breakout Level.
In this case somewhere around 14865.
Next we will calculate the distance between the Neckline and the Low of Head, which is around 622 points.
Now for the upside we will add these points to the Neckline i.e. 14865 which brings us to 15487 which will be its New All Time High.
TRADE :
- We would go Long after the Breakout takes place with Stop-loss being the low of Right Shoulder.
Note : This is not an advise, please do not act solely on this information.
CONCLUSION :
With taking all the above points into consideration I personally think that if Nifty gives a Breakout we are seeing it at New High.
Thank You for taking out time.
