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Tuesday, February 28, 2012

Nifty Bullish views.( Inverse HnS analog here)

I thought that Nifty would atleast touch the Lower Bollinger band. But it did not. Though the Analog was as good as it gets . But that doesnt mean it did not work . Now we have to see whats ahead. First lets see where the market bounced  from .
Bounced just above the 233 DMA, touched the 34 SMA, and also 33% retracement.

Now look at the following combination of HnS and Inverse HnS that we found when Nifty was climbing last January .

Now check this current Market doing a similar formation . I bet Nifty Futures will first target that Neckline at 5563. And then come back to complete the right shoulder . This is massively bullish if this analog works.

Also another reason to be bullish is the following chart of AUD/USD. I thought yesterday that we might come back to complete a 5 wave abcde bull flag. But the resistance line has been taken apart.

Doolar chart updated. The dollar analog correctly called the dollar movement .

Many people were calling for higher dollar by looking at the higher lows of the dollar. Its been going low and now we can see a HnS confirmed in daily chart . Next support is at the pink line and 61.8% retracement at 77.58

Bullish for NIFTY.


  1. Hi jonak...As per what i have read in edwards magee, what we call valid H&S patterns take place after extensive rises and inverse H&S occur after extensive falls...You are showing 2 (one past and one potential) inverse H&S patterns that are occurring after rises.
    So basically these are not H&S patterns. While what you are surmising( i.e.. your forecast) may actually happen, it won't happen for the reason you think it has happened.
    Thats my opinion from what I have read. BTW loads of analysts do the same thing , but i think its wrong analysis.

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  3. you have a good question ....But i think we can label them as continuation pattern...

    I hope this will answer your question ::