Nifty Bank IndexUpdated BankNifty - Coiling up before violent move?
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This is an experimental setup I am sharing and I would recommend no one to take any trade based on this post.
If we fit the trend lines in a specific way as shown in the chart, it seems like BNF has been coiling up in a kind of an upside wedge and maybe on the verge of a breakout.
We can expect a violent move from BNF in case the pattern does playout, but I would be just watching to see the correctness of my view rather than put any money behind it.
The 22,400 - 22,500 region can act resistance as it aligns with the 0.618 fib level, though this time the resistance would have become weaker on the second retest.
The zone could be resistance area also because the top of the wedge aligns with it and thus we can expect confluence of resistance.
Looking at Nifty, it seems a bit over-extended and we can expect some retrace/sideways move from Nifty and BankNifty in near future.
DAILY RSI
BANKNIFTY - 62 (neutral zone)
“Money is made by sitting, not trading.” - Jesse Livermore
Before you start reading kindly hit that like button and follow. It motivates me to keep doing such work for free.
Thanks
This is an experimental setup I am sharing and I would recommend no one to take any trade based on this post.
If we fit the trend lines in a specific way as shown in the chart, it seems like BNF has been coiling up in a kind of an upside wedge and maybe on the verge of a breakout.
We can expect a violent move from BNF in case the pattern does playout, but I would be just watching to see the correctness of my view rather than put any money behind it.
The 22,400 - 22,500 region can act resistance as it aligns with the 0.618 fib level, though this time the resistance would have become weaker on the second retest.
The zone could be resistance area also because the top of the wedge aligns with it and thus we can expect confluence of resistance.
Looking at Nifty, it seems a bit over-extended and we can expect some retrace/sideways move from Nifty and BankNifty in near future.
DAILY RSI
BANKNIFTY - 62 (neutral zone)
“Money is made by sitting, not trading.” - Jesse Livermore
Note
Keep on eye on this.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.