A Channel in action

Adani Enterprises Daily Chart showing a Channel

A line joining the top A with the first lower top C is extended and forms the upper part of the downward sloping channel.

Another line is drawn from the first bottom B parallel to line AC.

This is the lower part of the downward sloping channel.

Observe how price stays within this channel.

Support is taken at D and F.

Resistance is taken at E.

Price breaks through the channel at point G.

Notice how price takes support on top of the channel at point H indicating role reversal of the upper trendline.

Disclaimer: The views given in this blog are for educational purposes only. Readers should exercise personal discretion and take expert advice before taking any action in the stock market.The author of this blog is not responsible for any losses which anyone might incur in the stock market by acting on these views.  

Nifty to touch 6000 mark

Nifty's today's high is 5976 and today's close is 5961 as predicted in my earlier blog post."

Nifty to face resistance at 5950 - 5970.

Now it may breach 5970 directly or go up after a correction.

There is an inverted Head and shoulders reversal pattern at the bottom seen beautifully in hourly chart.

This pattern gives a target of at least 6000 for the Nifty.

Also seen is the resistance line at 6006 as shown by the blue horizontal line.

 

Right click on chart and click on view image for magnification
Nifty hourly chart    

Disclaimer: The views given in this blog are for educational purposes only. Readers should exercise personal discretion and take expert advice before taking any action in the stock market.The author of this blog is not responsible for any losses which anyone might incur in the stock market by acting on these views.