NIFTY moving out of Fibonacci Arc
Posted by JV on July 15, 2008
Yesterday I tried to apply Fibonacci Arc on NIFTY. I applied the Arc from the high point of 02-05-2008 to the low of 02-07-2008. However, Fibonacci Arc is not supposed to give any kind of buy/signal but still gives idea about the trend.
I was skeptical about the application of Fibonacci arc and other Fibonacci tools. But when I applied it and observed the arc , surprisingly it seemed to prvoide support and resistance lines.
(kindly click on the image for larger view)
Yesterday’s doji was on the boundary of the 100% circle of the Arc. T0day NIFTY traded outside the Arc and made new low. This movement has again confirmed the downtrend.
Uma said
Happy Independence Day JV and best wishes for rakshabandhan 2morrow!
Rajandran said
This one is really interesting ……but it will very useful if u can post with last weeks closing
…can u ?? pls try … i will also check if i can edit arch on chart …never done that before though
Tarun said
Damn interesting this.
Uma said
superb chart by the way!
Uma said
jv: congrats on your profits! actually my tata steel long was hedged with a put (PA 640) but today I sold my future and put both…not sure when to re-enter.