CHART-III
CHART-II
- Price for now is hanging on above the support line. For this hour the level to break for bears is 5050. If it does not breakdown today and close at a neutral level then Both Bullish and Bearish possibilities exists.
- This weekend is important as the European leaders are going to meet, So we never know what's going to come out of there
CHART-I
- Possible diamond pattern in nifty hourly charts.
- This pattern will be valid or it will look good if the last hour high is not taken out. Pattern will play out well if price starts to move down towards the support line.
- So let's wait and see how this unfolds.
@San,
ReplyDeleteGreat eyes once again. :) I was so focused on the Triangle that I missed the Diamond totally.
BTW, the last leg of a Triangle (E) usually ends either ABOVE or BELOW the triangle boundary, never EXACTLY ON it. This is the second instance I saw in last few days, where the E completed just below,creating a false breakdown,trapping the shorts. This one looks exactly like that. Perhaps 5190-5200 coming by Tuesday (Wishful thinking)! :P
Please ignore my words if you feel. keep up the hard work. Its so very very useful. Thanks for all the charts once again. :)
@FIRE
ReplyDeleteThanks for the comments.
As far as the diamond goes by closing inside the pattern it has kept open both bullish and bearish possibilities. As you said some bears looked trapped with that false spike below the support line. Let me look for more clues during the weekend update.
Dear San,
ReplyDeleteExtremely nice illustration.Thanks.
As you said... Nifty closed exactly @ 5050,means both ends are still open... Let us see.
Dear Fire,
Today EOD Bhav copy shows 46.55 lac addition and total O.I. comes to 1.29 CR.which is on lighter side but..??? I was... and still expecting 5200 plus expiry as per O.I. data but now after today's close now have become slightly suspicious because,Nifty has closed well below JNSR and particularly,DHEMA has risen due to today's top so,if Bulls shall get the positive trigger in next 2 days then only with a huge gap up opening the bearish sentiment shall nullify,otherwise out of 1.29 lac total Nov NF O.I.1.20 CR O.I. is bet.NF 5030-5184,so now 5030 has become very crucial for Nov.NF.Let us see.
Hi san......doing great work.I am a follower of ur sites.
ReplyDeletewhat is the target of this diamond pattern after the breakout or breakdown.Both side Target?????? and how we calculates target from this diamond pattern.
@mynac
ReplyDeleteThanks for the visit first of all.
Thanks for your views on the OI it's always helpful for traders.
I think nifty will have a Gap on Monday. And To which side it is going to be will be based on how Dow and S&P close and the news out of Europe during the weekend.
@Jhalak
ReplyDeleteTake the High and Low of price inside the pattern. When we get a breakout just add the difference of the high and low to the breakout number.