Nifty has been in correction mode ever since it hit the High of 8180 on 08 Sep 2014, It has been in sideways choppy mode from that point of time.As discussed in our Facebook page we are seeing some big move coming in Nifty.
Using Gann 52 concept , classic technical Analysis I am putting forward the view till end of 2014, use the below view as an input to your trading/investing plan, Do not blindly follow the same, trading is all about probability and we are analyzing one of many probability.
1. Trendline Support
AS seen in above chart, Nifty is holding on to its trendline support and also 61.8% retracemetn @ 7784, low made was 7796 which signify bulls are still in control over market
2. Hammer Candlestick formation
A price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick.Nifty has formed Hammer pattern near its swing lows as shown in above chart, so most of correction has ended with a hammer formation.
3. Gann Price Time Symmetry – Importance of 52
52 significant number in the Maya calendar , Also as per Gann The square of 52 which is composed of 7 days is one of the most important for measuring price and time symmetry Using the above concept I have tried to calculate the price and time symmetry in Nifty as seen in above chart
So as per above analysis below is the calculation table
We have taken the High and low of 52 trading days so using the above concept we can see another high in range of 8550/8966 by December 2014.
This analysis will fail once nifty start trading below 7540 level