Channel Play in Nifty Revealed......

If you think that nifty moves randomly anywhere any-time, then I am sure this post is going to challenge the way you think as I am going to reveal the channel play going in nifty since past nine months now. This channel play reveals how nifty is moving in a particular channel now.

Before we move further let's have a look at the chart below:

This charts shows the movement of nifty from May 2014 till now. As we can see starting from may last year nifty is moving in a channel, every time the stock tests lower point of the channel it start moving up and with the test of the upper channel it start coming downward. In November 2014 as we can say nifty tried to break the upper channel for more than a month and was unable to break the trend line.

The lower support line has been tested 6 times now and every-time nifty bounce back from that levels. One may say that the index movement is as per news, investor sentiments or global clues but unknown of all these facts if anyone just look at the charts he can spot where nifty is heading towards. Now one may ask how long this will continue? Well.. as long as the channel is not broken on either side this movement will continue.

If there is a breakdown from this trend line nifty will turn bearish and if there is breakout nifty will turn more bullish. As of now nifty is moving within this channel with the overall movement towards the sky so we can relax as we are in a bull market now. I am sure many of you must be thinking to comment where to find the charts of nifty or any stock so here is the direct link for you people you can go to it draw trend lines and analyze your charts there on:

http://chartink.com/stocks/nifty.html

Stay tuned for EW analysis of nifty...

Happy Investing
Multiplier Wealth