Charts to watch

I am becoming interested in the metal markets. The Copper, Silver and Gold charts are displaying possible Head & Shoulders bottom patterns. Although the left shoulder is awkward. However, a decisive close below this week's lows would alter the above analysis and could lead to a retest of the June lows. But my guess is the right shoulder which will be subject to considerable change before the next trend is declared. I would buy an upside breakout but would not short below the september lows.

Nifty Gaps

1) According to the gap theory Exhaustion gap is the last leg of a trend. Which is negative.
2) Nifty as penetrated the upper channel line at 5970 of descending flag or wedge. Which is positive for target of 6730.
3) It has completed 'Head' of a possible 3 months Head and Shoulders Pattern. Which has neckline at 5993. Which is negative.
Conclusion
Hold your long position till Nifty close decisively below 5970. Below 5970 one can short Nifty with the stop loss of recent high, because it  start forming right shoulder which has target of 5550-5450.

Multibagger Idea!

To interpret past patterns on the assumption that 'history tends to repeat itself' is the base of analysis of financial markets and economic factors. Metals companies like Tata Steel, Sesa Goa and Jindal Steel & Power are some of the Index stocks which are showing the same repeated chart patterns like sharp vertical rise, small top formation, sharp vertical down fall and again sharp vertical rise in parabolic trend. Prices of these stocks has reach below 2003 levels. Fundamentals of India as changed in last 10 years. So on both ground these stocks are the best multibagger investment bet for 1-2 years horizon. One can buy with the stop loss of recent lows, for the target of life highs.