Final Warning?
I have I have made a qualitative plotting of the weekly data of NIFTY, with colour coding. This is not a regular price chart, but it measures the quality of the price action, decides the trend change chances, and plot in a colour coded format. The propose of such a plotting is to visually see the chances of a direction change.
Now, you can see that from the third touch of the Chart Pattern, the dropping tendency has already stated. A confirmation was given by a second red bar. See the circled area. You may notice that, the latest red bar had the energy to drop below the prior bar. Those interested, may compare the earlier performance of such a plotting. Do not miss to observe , how well it works, when a colour change of the bar, along with the spiking below / above the prior bar occurs.
Last week, I had mentioned about the bottom rounding off. This time too I have shown the same (marked A). This too is giving visual indications of the events to come in the next weeks.
The bottom trend line for the next couple of days lies approximately at 4900.
All these indications, makes me believe that, the decline will accelerate in the coming weeks, unless NIFTY makes a weekly close above 5550.
DOW: The DOW Weekly Chart with a breakout detector is shown here. Historically, By Dec 2007, the Detector sensed a down breakout and the detector swung below the center line. It continued to remain in the bearish state till first week of June 2009, where it gave an up breakout detection. It remained in this bullish state, till last week of Jun 2010 and it has now detected a bearish mode. As it stands now, it is in a bearish mode, and presumably undergoing a retracement. As long as the detector remains, below the center line, DOW weekly chart will be in the bearish mode.
