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.
July 15, 2008 at 8:44 pm
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.
July 15, 2008 at 10:42 pm
superb chart by the way!
July 16, 2008 at 5:10 pm
Damn interesting this.
July 27, 2008 at 6:03 pm
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
August 15, 2008 at 9:56 pm
Happy Independence Day JV and best wishes for rakshabandhan 2morrow!