Saturday, January 14, 2012

Bullish and Bearish views using Fibonacci for January series


The above chart is bullish view if and only if Nifty manages to close above 4975  on the back of good results of heavy weight stocks RIL, SBI, ICICI, HDFC and positive reaction to RBI policy on January 24th.


Bearish view if market will react negative to poor results. The range of 4900-4750 is what Nifty has formed now largely in the last 9 trading sessions getting ready for the result season.

8 comments:

  1. Perfect Vinodji, a close above 78.6% on closing basis will open the gates for the Bulls to a much higher levels.

    Good Analysis

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  2. Simple but very effective analysis. Need more like this.

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    Replies
    1. Hi RB:

      Thanks for visiting, just learning to trade :)

      regards

      vinod

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  3. Can you put some light on the candle stick formation on the last 3 bars in the graph, may be I am biased but got a bearish flavor to it! You have proved once again that simplicity will always be profitable than complicated analysis as your post helps one take clear trading action!

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    Replies
    1. Hi Aniruddha: Thanks for your comment. While the last three days candles does show a rising channel (bearish scenario) and some exhaustion, the time taken to reverse could delay due to lack of the surprise element now and we are in the midst of result season too and the surprise element could be some good results/RBI policy. In such a scenario, caution needs to be exercised and longs to be taken only if spot price is above Friday high or stay away. I feel a close above 4980 only makes way for change in bearish views and the bearish view as per your count holds. Lets see :)

      regards

      vinod

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