Bank Nifty Important Points to Observe
Following points are to be noted here from this chart:
1. From 17-06-2022 market started moving in positive direction on a daily time frame scale.
2. First swing high(27-06-2022) and low(01-07-2022) when connected through Fibonacci retracement tool we get important levels of retracement which are probable supports and resistances.
3. Considering this retracement level we are 2.618 level of the initial swing and now market has gone sideways indicating either further uptrend continuation or retracement till level 1.618 which is 36085. However there are certain supports built up now which might prevent that much drop.
4. 37000-37200 is a strong support zone. This area was established into bull territory through breakaway gap. Which is also the case for previous swings.
5. 38300-38500 is short term resistance zone for daily time frame.
6. We can see using trend lines how the slope of this rally has been increasing with each drop and its next continuation.
7. There is also one curved green trend line connecting important lows of the rally.
8. So today market has broken down below the support trend line of last swing. It also reached this green curved line which is a strong support.
9. Green trendline support as well as strong OI support zone of 37000-37200 come near the same area.
10. Now considering the sideways structure we have seen in last some sessions we can anticipate one big pullback or continuation of the rally.
11. If market breaks above 37300-400 zone and sustains above it then it would try to reach its next retracement level of 3.618 which is 39798.
12. Based on all these point i think very good trading opportunities will be available for us. Trade with caution and once the direction is clear don't hesitate to let your profits run and if it goes against the trade then don't hesitate to cut the losses short. Good luck!
1. From 17-06-2022 market started moving in positive direction on a daily time frame scale.
2. First swing high(27-06-2022) and low(01-07-2022) when connected through Fibonacci retracement tool we get important levels of retracement which are probable supports and resistances.
3. Considering this retracement level we are 2.618 level of the initial swing and now market has gone sideways indicating either further uptrend continuation or retracement till level 1.618 which is 36085. However there are certain supports built up now which might prevent that much drop.
4. 37000-37200 is a strong support zone. This area was established into bull territory through breakaway gap. Which is also the case for previous swings.
5. 38300-38500 is short term resistance zone for daily time frame.
6. We can see using trend lines how the slope of this rally has been increasing with each drop and its next continuation.
7. There is also one curved green trend line connecting important lows of the rally.
8. So today market has broken down below the support trend line of last swing. It also reached this green curved line which is a strong support.
9. Green trendline support as well as strong OI support zone of 37000-37200 come near the same area.
10. Now considering the sideways structure we have seen in last some sessions we can anticipate one big pullback or continuation of the rally.
11. If market breaks above 37300-400 zone and sustains above it then it would try to reach its next retracement level of 3.618 which is 39798.
12. Based on all these point i think very good trading opportunities will be available for us. Trade with caution and once the direction is clear don't hesitate to let your profits run and if it goes against the trade then don't hesitate to cut the losses short. Good luck!
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