Bullish Possibility:
Not much to update for this week. We already have discussed what Banknifty will do this week couple of weeks back. Hence let's start with what we mentioned in our earlier post,
Quote
Bank Nifty has closed above the falling trend channel (the sky blue lines) which is positive. As discussed in previous post this will eventually bring 16922 which is the next target / resistance level. If we concur 16922 as well 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
So last week we achieved 16922 moved pass upto 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.
Bearish Possibility: Below 16922 Banknifty is bearish and can target 16289, 15944, 16673 and 15438 respective as marked in chart or even can move into a consolidation range.
Possible Wolfe Wave (Bearish Possibility):
Wolfe wave is another possibility. As can be seen from the above hourly chart of Banknifty. Banknifty is currently in a raising wedge pattern (yallow and black lines). Raising wedge pattern is bearish. Hence if the rasing black line is violated Banknifty will start falling heavily upto 15437 or below. But that is not a perfect wolfe wave. In wolfe wave Banknifty should move upto point 5 violet the yellow line upwards and then starts falling. Now since we have not yet touched point 5 yet hence that's another possibility that we may reverse upwards once again without violating the raising black line and reach upto point 5, then start falling to 15437 or below.
Summary:
All these above are possibilities and probabilities now. Hence just follow the Keep It Simple and Stupid (KISS) method. Above 16922 it's bullish. So manage your shorts with 16922 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!!
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| Bank Nifty Daily chart by Deb Trades |
Not much to update for this week. We already have discussed what Banknifty will do this week couple of weeks back. Hence let's start with what we mentioned in our earlier post,
Quote
Bank Nifty has closed above the falling trend channel (the sky blue lines) which is positive. As discussed in previous post this will eventually bring 16922 which is the next target / resistance level. If we concur 16922 as well 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
So last week we achieved 16922 moved pass upto 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.
Bearish Possibility: Below 16922 Banknifty is bearish and can target 16289, 15944, 16673 and 15438 respective as marked in chart or even can move into a consolidation range.
Possible Wolfe Wave (Bearish Possibility):
 |
| Bank Nifty Daily chart by Deb Trades |
Wolfe wave is another possibility. As can be seen from the above hourly chart of Banknifty. Banknifty is currently in a raising wedge pattern (yallow and black lines). Raising wedge pattern is bearish. Hence if the rasing black line is violated Banknifty will start falling heavily upto 15437 or below. But that is not a perfect wolfe wave. In wolfe wave Banknifty should move upto point 5 violet the yellow line upwards and then starts falling. Now since we have not yet touched point 5 yet hence that's another possibility that we may reverse upwards once again without violating the raising black line and reach upto point 5, then start falling to 15437 or below.
Summary:
All these above are possibilities and probabilities now. Hence just follow the Keep It Simple and Stupid (KISS) method. Above 16922 it's bullish. So manage your shorts with 16922 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!!
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