Thursday, November 1, 2012

The Nifty 50

There have been several requests from Indian subscribers to do some geometry on the Nifty 50. I have posted a weekly technical chart and a daily geometric chart. I will endeavor to make periodic updates on this market--which I think has INCREDIBLE growth potential long term.
  • diamonds are major pivots (and horizontal S&R levels)
  • Market is retreating from a weekly RSI overbought level.
  • breaking above the 'double resistance point' would be VERY bullish although a time-price correction is currently underway.

The daily geometric chart does not 'fit' that well since none of the harmonic lines of the square are providing support-resistance or delineating pivot points...although the corner of the square (point C) was fairly close to the time period of the October high (natural time-price square). The bottom of the initial square (green line BC) seems to be the midpoint of the May-Oct  rally. The parallel (red and green) lines should provide support and resistance.

Here is a harmonic based on the SQRT of 5 (2.236)
  • Triangles ABG and BDC are based on the rectangles formed from the 2x1 diagonal of square ABCF
  • AG = 2.236xBG   and  BD = 2.236 CD
  • The circles formed from radii AG and BD seems to resonate with price time patterns.

Testing the 200 day moving averages.

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