Bank Nifty - 25K and 200 MA confluence resistance zone ahead
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BankNifty had a great previous session with close to 1000 point move and the upcoming levels to watch out for would be the 25K level which is in confluence with the 200MA zone.
That zone is also the top of the trend line as shown in the chart above so we can expect some resistance there though I won't think of going short.
Considering the previous big move, there would be buying action happening tomorrow or over the next few days. If bullish action continues in BNF, then that should pull Nifty towards the upside also.
A good trading strategy for the next few days may be dip buy for strong banking stocks.
As long as the low of the big candle followed by the swing low holds in terms of candle close, we can expect the upside trend to continue.
Test Pattern
First big green day (Will update here as what we observe over next few days)
Key levels:
25K - Round number resistance
200 MA resistance
Please note: These are my views and not trading advice. Please consult your financial adviser before making any trading decision.
Daily RSI:
Bank Nifty - 74 (Bullish)
“The men on the trading floor may not have been to school, but they have Ph.D.’s in man’s ignorance.” ― Michael M. Lewis, Liar's Poker
Before you start reading kindly hit that like button. It motivates me to keep doing such work for free.
Thanks
BankNifty had a great previous session with close to 1000 point move and the upcoming levels to watch out for would be the 25K level which is in confluence with the 200MA zone.
That zone is also the top of the trend line as shown in the chart above so we can expect some resistance there though I won't think of going short.
Considering the previous big move, there would be buying action happening tomorrow or over the next few days. If bullish action continues in BNF, then that should pull Nifty towards the upside also.
A good trading strategy for the next few days may be dip buy for strong banking stocks.
As long as the low of the big candle followed by the swing low holds in terms of candle close, we can expect the upside trend to continue.
Test Pattern
First big green day (Will update here as what we observe over next few days)
Key levels:
25K - Round number resistance
200 MA resistance
Please note: These are my views and not trading advice. Please consult your financial adviser before making any trading decision.
Daily RSI:
Bank Nifty - 74 (Bullish)
“The men on the trading floor may not have been to school, but they have Ph.D.’s in man’s ignorance.” ― Michael M. Lewis, Liar's Poker
Note
There had been good green days before the big candle and this reduces the chance of further upside since profit booking would be expected.The huge buying could also have been a trap laid out by Smart Money.
Anyhow, the next trading session saw an even larger sell candle and the market has been bearish since that.
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.
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.