Bullish Possibility:
We will start with what we discussed last week:
Quote:
last week we achieved 16922 moved pass up to 17029 and whipsaw 16922 and fall below it. Hence a Breakout failure at 16922 level. Hence no bullish possibility till we are below 16922. Bank Nifty will be bullish only above 16922. As mentioned earlier post *IF* we have a successful breakout above 16922 then next set of resistances will come at around 17302, 17442, 18234 and 18890 respectively as marked in the chart. Above all these said resistances will come the ultimate all time high of Bank Nifty at 20907.
Unquote:
Now let's explore what is there for us in Banknifty Store for this week.
As can be seen from the above charts bullish possibilities are now muted as Banknifty has broken down the ascending wedge pattern which is bearish. A slight bullish possibility exists only if Banknifty breaks the falling red trendline. But that can not be confirmed till Banknifty is below 16922 or the top line of the blue descending broadening wedge pattern. So a bullish attempt can be made but only above 16400 not below it while keeping a close key on the key resistance level 16922.
Bearish Possibility:
Banknifty is bearish below 16400 (the red down trendline + filter) particularly since this has broken down the rising wedge pattern (yellow and black raising resistance and support lines respectively). The initial target could be the green line in the chart, at around 15944. The next targets are 15673 and 15437 respectively as marked on the chart. If 15437 also broken then the ultimate target would be the bottom blue line of the descending broadening wedge pattern which come around 13350 currently.
Summary:
1) Below 16400 Banknifty is bearish.
2) Above 16400 Bullish attempt can be made but with cautious as 16922 will be the target or next resistance level.
3) Hence if short manage your shorts with 16400 as SAR (stop and reverse) with 50 points filter.
Final words:
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.
Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!
We will start with what we discussed last week:
Quote:
last week we achieved 16922 moved pass up to 17029 and whipsaw 16922 and fall below it. Hence a Breakout failure at 16922 level. Hence no bullish possibility till we are below 16922. Bank Nifty will be bullish only above 16922. As mentioned earlier post *IF* we have a successful breakout above 16922 then next set of resistances will come at around 17302, 17442, 18234 and 18890 respectively as marked in the chart. Above all these said resistances will come the ultimate all time high of Bank Nifty at 20907.
Unquote:
Now let's explore what is there for us in Banknifty Store for this week.
 |
| Banknifty Daily Chart |
 |
| Banknifty Hourly Chart |
Banknifty is bearish below 16400 (the red down trendline + filter) particularly since this has broken down the rising wedge pattern (yellow and black raising resistance and support lines respectively). The initial target could be the green line in the chart, at around 15944. The next targets are 15673 and 15437 respectively as marked on the chart. If 15437 also broken then the ultimate target would be the bottom blue line of the descending broadening wedge pattern which come around 13350 currently.
Summary:
1) Below 16400 Banknifty is bearish.
2) Above 16400 Bullish attempt can be made but with cautious as 16922 will be the target or next resistance level.
3) Hence if short manage your shorts with 16400 as SAR (stop and reverse) with 50 points filter.
Final words:
If you like this post do share it and leave your comment. Any question related to the topic? Feel free to ask.
Trade safe and keep checking this space for any further updates on developing resistances in between. Also check out our other publications on Nifty, Bank-nifty and other stock specific at the left hand column. You can also visit my masters (Ilango) blog for daily updates on Nifty. Happy Trading. As my mater says, Get Rich Slowly and Quietly. Cheers!!
.png){kind=small}
No comments :
Post a Comment