Nifty's Cup & Handle: Is It Broken?
53sThe cup and handle pattern is a classic technical analysis topic, and the uncertainty about its validity creates suspense and engagement.
▶ Play ClipAI Summary
This video provides a technical analysis review and preview of the Nifty index, focusing on the cup and handle pattern and a potential flag pattern. The presenter discusses key support and resistance levels, and outlines scenarios for future market movement.
Chapters
[00:06]
Market Overview
Nifty reached 25704 and closed at that level, showing a consolidation range.
[00:33]
Cup and Handle Pattern
The cup and handle pattern is still valid unless the 24,400 level is breached. The handle structure appears broken, but the pattern remains intact for now.
[01:14]
Lower Timeframe Flag
On lower timeframes, a flag pattern has formed within a channel, suggesting potential upward movement if the flag breaks out.
[01:59]
Potential Targets
If Nifty breaks above 26,000, it could move towards 26,800-27,000, a potential 800-point rally.
[02:41]
Resistance Levels
The next major hurdle is at 26,400, which is a key resistance level to watch.
[03:13]
Pattern Invalidation
The flag pattern would be invalidated if the market breaks below the flag's lower boundary, similar to the cup and handle invalidation at 24,400.
[03:37]
Patience and Confirmation
Traders should wait for pattern confirmation before entering trades, as patterns may not always validate.
[04:15]
Educational Offerings
The presenter mentions franchise locations in Chennai, Coimbatore, and Malaysia, and offers online classes for those interested in learning systematic multi-timeframe analysis.
The Nifty is in a consolidation phase with a valid cup and handle pattern and a potential flag pattern on lower timeframes. A breakout above 26,000 could lead to significant upside, but traders should wait for confirmation before acting.
Mentioned in this Video
Study Flashcards (5)
What is the current level of Nifty mentioned in the video?
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What is the current level of Nifty mentioned in the video?
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25704
00:06
At what level does the cup and handle pattern become invalid?
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At what level does the cup and handle pattern become invalid?
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24,400
00:47
What is the next major resistance level for Nifty?
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What is the next major resistance level for Nifty?
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26,400
02:41
What potential target is mentioned if Nifty breaks above 26,000?
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What potential target is mentioned if Nifty breaks above 26,000?
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26,800-27,000, an 800-point rally
02:12
What pattern is forming on lower timeframes?
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What pattern is forming on lower timeframes?
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A flag pattern
01:32
💡 Key Takeaways
📊
Cup and Handle Validity
Clarifies the invalidation level for a major pattern, which is crucial for traders.
00:33
💡
Potential 800-Point Rally
Provides a concrete target based on pattern analysis, offering actionable insight.
01:59
⚖️
Patience in Trading
Emphasizes the importance of waiting for confirmation, a key principle for risk management.
03:37Full Transcript
[00:06] Kishore Bhavantasi of Trade Achawars. So, what are we going to watch in this video? We are going to watch our latest review and preview. If you look at the Nifty right now, the market has reached 25704 and the market has closed today
[00:19] . If you've seen this, you'll know that it's been a good consolidation range for a while now . The market still were asking in the comments about this, sir.
[00:33] invalid either. You can tell by looking at the cup and handle pattern handle pattern . Because [adjusting the throat] structure, that breakout and then this level of breaking and breaching, but
[00:47] handle structure and it looks like it's broken . So, there is still some way to go before that level is breached in the 24,400 range, and this pattern will only become invalid if it breaks through. So for now, it's not
[01:00] turned around, taken support here, and . If that is the case, then there is a huge potential for Nifty in the coming days. Even though it's a bit of a sideways trend, if you look at the lower time frame in the middle,
[01:14] though it's a bit of a sideways trend, if you look at the lower time frame in the middle, know that the market has been sideways for a while now. But come on, let's see what's happening in a lower time frame.
[01:32] flag. So we took our top from here, so what happened to us when this came? It became a proper flag for you. This is a channel plus, this came and we can take it as our host.
[01:45] This came and flagged, so now the market has come and this flag is inside the baton. So once the market breaks this one, it will go back to the . So, if it is around 24500, the ghost bottom and top will come
[01:59] around 24500, the ghost bottom and top will come you see it coming from this level, let's say 26000. If this
[02:12] 2600 level is reached and the market breaks, then from here, it will be around 8000 points, as we expect, what can happen to Nifty from 26800 to 27000? They have the potential to go above the market,
[02:24] but what should happen first? where will the next major hurdle be? Will this 26400 be the next level of resistance? If you break through, there
[02:41] you have a broken cup and handle pattern, which is has the potential to move higher. If you look at the daily chart, or even the daily R 4-hour chart, the market is currently in a proper
[02:57] how a pattern forms on each time frame in multiple time frames trade, you can analyze that time frame properly and can be done. So all this shows is
[03:13] can be predicted technically. If this market comes back and clear this flag. [First] If this is to become invalid, if you come back to the temple and break this poster,
[03:25] almost like the cup and handle become invalid. I don't know of any circumstances for that right now. However, let's be patient and watch. The mistake many people make with this is that they think that if it were a batten form,
[03:37] it would definitely break and fall over, so they make a bag right here and put it in always to wait until there is a pattern.
[03:49] gives a pattern, it's a good thing. say whether that badge will arrive and be validated every time . That's why I waited. It will be
[04:01] . That's why I waited. It will be now we have found the flag pattern formation . We'll see if it's validated or . We know about it after the market breaks once.
[04:15] Similarly, the cup handle has already broken out and is waiting. If there is a breakout above Once, you're thinking of analyzing the same way I do, but traders teach people
[04:28] systematically. What patterns appear in a multi-timeframe? Whatever pattern we have, whatever timeframe we set, we've been teaching you . So if you look at France, we have five Frances in Chennai, Coimbatore,
[04:41] . So you can join this franchise wherever you want. Only in Malaysia, coming March 7th, we will start our Prasha classes in want details about it, please call our number and ask. We will give you
[04:54] all the details in case you cannot come to France. We have online classes. If you want to enroll in Swell, please call our number. I hope you like this video and thank you very much for your care.
