Ratio Chart - Banknifty v/s NiftyRatio chart is at an important support zone suggesting bank nifty to lead nifty from now.
BANKNIFTY trade ideas
[INTRADAY] #BANKNIFTY PE & CE Levels(15/10/2024)Today will be gap up opening expected in banknifty. After opening if banknifty starts trading above 52050 level then possible strong upside rally of 400-500+ points. 51950 will act as an immediate resistance for banknifty. Downside expected 51550 level if reversal happens at this level. For today session 51550 will act as a strong downside support. Any major downside only expected below this level.
Bank Nifty Analysis (30 Min Timeframe)
Bank Nifty Analysis (30 Min Timeframe):
Current Scenario:
Pichle trading session ke levels kaafi effective rahe, jahan se price ne 51,754.25 ka support liya aur upar ki taraf bounce kiya.
W pattern breakout ho chuka hai, jo ek bullish reversal ko indicate karta hai.
Ab price critical resistance 52,378.20 ke paas aake thoda slow ho raha hai, yeh level key hai aage ke direction ko confirm karne ke liye.
Volume dheere-dheere badh raha hai, lekin ab tak ek clear breakout move ke liye solid volume spike ka intezaar hai.
Possible Outcomes:
1. Bullish Scenario:
Agar price 51,754.25 ke upar sustain karta hai aur 52,378.20 ko convincingly break karta hai, toh uptrend continue kar sakta hai.
Entry: Long entry 51,500 ke aas-paas, SL 51,200 ke neeche.
Target: Pehla target 52,800, aur dusra target 53,200+ ho sakta hai.
2. Bearish Scenario:
Agar price 52,378.20 ko break nahi kar paata aur wapas reverse hota hai, toh ek consolidation ya short move dekha ja sakta hai.
Breakdown below 51,754.25 can trigger a move towards 51,200-51,000.
Entry: Short below 51,754.25, SL 52,000 ke upar.
Target: Pehla target 51,200, aur dusra target 50,800 ho sakta hai.
Strategy:
52,378.20 ke clean breakout ka wait karo longs ke liye, ya phir is level ke aas-paas consolidation ya rejection ko dekho for reversal.
Volume spikes ka dhyan rakho confirmation ke liye, low volume false breakout signal ho sakta hai.
Previous session ke levels ne kaafi ache se kaam kiya, to aaj bhi price action ka reaction inhi levels pe focus kar ke watch karna chahiye.
Final Note: W pattern ka breakout ho chuka hai, lekin confirmation tab milega jab price 52,378.20 ke upar ek strong move karega. Agar price is level ko breach karne me fail karta hai, toh short-term pullback ya consolidation phase ho sakta hai.
Confirmation mil chuka hai, lekin nayi entry 52,378.20 ke upar hogi for safe longs.
Never judge my risk and analysis
Bank Nifty Analysis (30 Min Timeframe)
Bank Nifty Analysis (30 Min Timeframe):
Current Scenario:
Pichle trading session ke levels kaafi effective rahe, jahan se price ne 51,754.25 ka support liya aur upar ki taraf bounce kiya.
W pattern breakout ho chuka hai, jo ek bullish reversal ko indicate karta hai.
Ab price critical resistance 52,378.20 ke paas aake thoda slow ho raha hai, yeh level key hai aage ke direction ko confirm karne ke liye.
Volume dheere-dheere badh raha hai, lekin ab tak ek clear breakout move ke liye solid volume spike ka intezaar hai.
Possible Outcomes:
1. Bullish Scenario:
Agar price 51,754.25 ke upar sustain karta hai aur 52,378.20 ko convincingly break karta hai, toh uptrend continue kar sakta hai.
Entry: Long entry 51,500 ke aas-paas, SL 51,200 ke neeche.
Target: Pehla target 52,800, aur dusra target 53,200+ ho sakta hai.
2. Bearish Scenario:
Agar price 52,378.20 ko break nahi kar paata aur wapas reverse hota hai, toh ek consolidation ya short move dekha ja sakta hai.
Breakdown below 51,754.25 can trigger a move towards 51,200-51,000.
Entry: Short below 51,754.25, SL 52,000 ke upar.
Target: Pehla target 51,200, aur dusra target 50,800 ho sakta hai.
Strategy:
52,378.20 ke clean breakout ka wait karo longs ke liye, ya phir is level ke aas-paas consolidation ya rejection ko dekho for reversal.
Volume spikes ka dhyan rakho confirmation ke liye, low volume false breakout signal ho sakta hai.
Previous session ke levels ne kaafi ache se kaam kiya, to aaj bhi price action ka reaction inhi levels pe focus kar ke watch karna chahiye.
Final Note: W pattern ka breakout ho chuka hai, lekin confirmation tab milega jab price 52,378.20 ke upar ek strong move karega. Agar price is level ko breach karne me fail karta hai, toh short-term pullback ya consolidation phase ho sakta hai.
Confirmation mil chuka hai, lekin nayi entry 52,378.20 ke upar hogi for safe longs.
Never judge my risk and analysis
BANKNIFTY : Key Levels and Strategies for 15-Oct-2024Bank Nifty Trading Plan for 15-Oct-2024
Previous Day's Chart Pattern Recap
On 14th October, Bank Nifty experienced a bullish breakout, pushing above the key resistance at 51,807 and testing the "Opening Resistance for Sideways" zone near 51,948. The index managed to stay above the 51,807 level, signaling potential further upside momentum. However, the profit booking zone near 52,384 - 52,540 could act as a strong barrier for further gains. The key will be whether Bank Nifty sustains above the 51,948 level at the open.
Opening Scenarios
Gap Up Opening (+200 points or more):
In the case of a gap-up above 51,948, Bank Nifty is likely to test the "Profit Booking Zone" between 52,384 and 52,540. If prices sustain above 52,384, there could be further upside; however, profit booking might lead to a pullback from these levels.
Trade Setup:
- Buy above 51,948 with a stop loss below 51,807.
- Targets: 52,384 and 52,540.
- Look for reversal signals around 52,384 for potential shorts with targets back towards 51,948.
Flat Opening:
A flat opening near 51,807 suggests that Bank Nifty could initially consolidate around this level. If it breaks below 51,807, there may be a short-term decline towards the intraday support of 51,534. If it holds, look for a continuation towards the higher resistance levels.
Trade Setup:
- Buy above 51,807 with targets of 51,948 and 52,384.
- Short below 51,807 with targets of 51,534 and 51,448.
- Wait for clear direction and momentum in the first 30 minutes of trading before making any decisions.
Gap Down Opening (-200 points or more):
A gap-down opening below 51,534 would bring the intraday support into play. If this level breaks, Bank Nifty could slide further towards the "Last Intraday Support" zone near 51,198.
Trade Setup:
- Buy near 51,534 with targets of 51,807 and 51,948.
- Short below 51,534 targeting 51,448 and 51,198.
- Gap-down scenarios often come with high volatility, so be cautious and use stop-losses diligently.
Risk Management Tips for Options Traders:
- In volatile scenarios like gap-ups or gap-downs, options premiums can rise quickly. Use options spreads to limit risk while capturing the upside or downside.
- Avoid buying options with inflated premiums after a gap open; instead, wait for a retracement or lower volatility.
- Keep position sizes small in volatile conditions and be prepared for quick market reversals.
Summary and Conclusion:
Bank Nifty is currently trading above its key support of 51,807, with the next upside targets being 52,384 and 52,540. However, failure to hold above 51,807 could lead to a downside move towards 51,534 and 51,448. Traders should wait for the first 30 minutes of the market to settle before making decisive entries, especially in options trades.
Disclaimer:
I am not a SEBI registered analyst. All trading ideas shared are for educational purposes. Please conduct your own analysis or consult a financial advisor before executing any trades.
BANK NIFTY S/R for 15/10/24Support and Resistance Levels:
Support Levels: These are price points (green line/shade) where a downward trend may be halted due to a concentration of buying interest. Imagine them as a safety net where buyers step in, preventing further decline.
Resistance Levels: Conversely, resistance levels (red line/shade) are where upward trends might stall due to increased selling interest. They act like a ceiling where sellers come in to push prices down.
Breakouts:
Bullish Breakout: When the price moves above resistance, it often indicates strong buying interest and the potential for a continued uptrend. Traders may view this as a signal to buy or hold.
Bearish Breakout: When the price falls below support, it can signal strong selling interest and the potential for a continued downtrend. Traders might see this as a cue to sell or avoid buying.
20 EMA (Exponential Moving Average):
Above 20 EMA(50 EMA): If the stock price is above the 20 EMA, it suggests a potential uptrend or bullish momentum.
Below 20 EMA: If the stock price is below the 20 EMA, it indicates a potential downtrend or bearish momentum.
Trendline: A trendline is a straight line drawn on a chart to represent the general direction of a data point set.
Uptrend Line: Drawn by connecting the lows in an upward trend. Indicates that the price is moving higher over time. Acts as a support level, where prices tend to bounce upward.
Downtrend Line: Drawn by connecting the highs in a downward trend. Indicates that the price is moving lower over time. It acts as a resistance level, where prices tend to drop.
RSI: RSI readings greater than the 70 level are overbought territory, and RSI readings lower than the 30 level are considered oversold territory.
Combining RSI with Support and Resistance:
Support Level: This is a price level where a stock tends to find buying interest, preventing it from falling further. If RSI is showing an oversold condition (below 30) and the price is near or at a strong support level, it could be a good buy signal.
Resistance Level: This is a price level where a stock tends to find selling interest, preventing it from rising further. If RSI is showing an overbought condition (above 70) and the price is near or at a strong resistance level, it could be a signal to sell or short the asset.
Disclaimer:
I am not a SEBI registered. The information provided here is for learning purposes only and should not be interpreted as financial advice. Consider the broader market context and consult with a qualified financial advisor before making investment decisions.
A Good boost Needed Closed at very crucial level . yes the day was really good but have to be cocious about tommorow, some reallly good level to cover up.
BANK NIFTY - Potential Bullish Move on Bullish Harami Formation
On the daily chart, a Bullish Harami pattern has formed, signaling a potential reversal after the recent downtrend. Here's my plan for this setup:
Entry: I'll be waiting for a 15-minute candle to break above the Entry Zone (51,784.80) . The high of that 15-minute candle will be my actual entry point.
Stop Loss: If any 15-minute candle closes below 50,194.30, I'll exit the trade to protect capital.
Target 1: 52,604.95 (First resistance)
Target 2: 53,375.30 (1:1 risk-reward)
Target 3: 54,965.80 / 54,840.50 (Major resistance area)
I'm watching for a breakout above the entry zone, ideally with strong volume for confirmation. The key here will be holding above the entry zone and making progress toward Target 1. If that happens, I’ll evaluate momentum for potential continuation toward Target 2 and Target 3.
As always, managing risk is crucial. If the price closes below the stop loss level on a 15-minute candle, I'll close the position. Let’s see how this setup plays out!
Disclaimer: This is not any financial advice, and for education purpose only.
BankNifty Long Trade on 15m Time Frame: Strong MomentumWe entered a long trade on BankNifty at 51155.90 on the 11th of October at 2:30 pm. The price has shown solid upward movement, and we have now set a trailing stop at 51,250 to lock in gains as we aim for higher targets.
Target Points:
TP 1: 51248.60 (hit)
TP 2: 51398.65
TP 3: 51548.70
TP 4: 51641.40
Trailing Stop: 51,250
Stop Loss (SL): 51080.85
The bullish trend remains strong, and we will continue monitoring the position for further developments as it approaches the remaining targets.
Bank Nifty Analysis (1 Hour Timeframe)
Bank Nifty Analysis (1 Hour Timeframe)
Price ek side move karne ke baad ab small consolidation bana raha hai, mere view mein yeh consolidation ke baad price neeche break kar sakta hai.
Entry Plan:
Short position consider karunga agar price 51,000 ke neeche breakdown deta hai.
Long position agar price 51,500 ke upar breakout kare to consider hoga.
Stop Loss:
For shorts, SL 51,200 ke upar rakha jayega.
For longs, SL 51,000 ke neeche rakha jayega.
Note: Small consolidation ke baad price neeche jane ki koshish karega, lekin confirmation ke liye breakdown ka intezar karenge.
Never judge my risk and analysis
Bank Nifty Analysis (1 Hour Timeframe)
Bank Nifty Analysis (1 Hour Timeframe)
Price ek side move karne ke baad ab small consolidation bana raha hai, mere view mein yeh consolidation ke baad price neeche break kar sakta hai.
Entry Plan:
Short position consider karunga agar price 51,000 ke neeche breakdown deta hai.
Long position agar price 51,500 ke upar breakout kare to consider hoga.
Stop Loss:
For shorts, SL 51,200 ke upar rakha jayega.
For longs, SL 51,000 ke neeche rakha jayega.
Note: Small consolidation ke baad price neeche jane ki koshish karega, lekin confirmation ke liye breakdown ka intezar karenge.
Never judge my risk and analysis
[INTRADAY] #BANKNIFTY PE & CE Levels(14/10/2024)Today expected flat opening in banknifty. After opening if banknifty starts trading below 50950 level then possible strong downside expected in banknifty upto 400-500 points. 51000-51500 zone will act as a consolidated range in today's session. Any strong upside rally only expected above 51550 level.
BANKNIFTY ProjectionBased on the demand of a follower here, we decided to look into BANKNIFTY for the first time ever...
We anticipate BANKNIFTY heading to either of the two zones up there marked with a blank line, the we expect a great fall on BANKNIFTY...
Should this align with your analysis, endeavour not to miss out on it!
BANKNIFTY : Trading Levels and Plan for 14-Oct-2024Bank Nifty Trading Plan for 14-Oct-2024
Previous Day's Chart Pattern Recap
On 13th October, Bank Nifty remained largely range-bound, holding the critical support level of 51,065 while facing resistance at 51,281. The index attempted to break the "Opening Support / No Trade Zone" (51,189–51,281), but sellers stepped in around 51,281, pushing prices lower. There is now an established resistance zone between 51,534 and 51,807, which is crucial for further upside momentum. Today's opening will be key in determining whether Bank Nifty can break out of its consolidation zone or remain range-bound.
Opening Scenarios
Gap Up Opening (+200 points or more):
If Bank Nifty opens with a gap up above 51,534, the first resistance to watch is 51,807, followed by the "Resistance for Sideways" zone near 51,948. If Bank Nifty sustains above 51,807, buyers may push for further upside, but a failure to hold this level could result in a reversal back towards 51,534 or lower.
Trade Setup:
- Buy above 51,534 with a stop loss below 51,480.
- Targets: 51,807 and 51,948.
- Short if Bank Nifty fails to sustain above 51,807, targeting 51,534 and 51,281.
Flat Opening:
A flat opening near 51,189 would keep Bank Nifty within the "Opening Support / No Trade Zone." In this case, the index may see some sideways price action before deciding on a breakout or breakdown. The critical levels to watch are 51,281 for the upside and 51,065 for the downside.
Trade Setup:
- Buy above 51,281 with targets of 51,534 and 51,807.
- Short below 51,065 targeting 50,818 and 50,735.
- Flat openings can be tricky, so wait for clear direction before entering trades.
Gap Down Opening (-200 points or more):
A gap-down opening near or below 51,065 would place Bank Nifty near the "First Buyers Support" (50,818). If buyers fail to defend this level, the next key support is the "Must Buying Try" zone at 50,628. Below this level, Bank Nifty could see an extended sell-off towards 50,517.
Trade Setup:
- Buy near 50,818 with targets of 51,065 and 51,189.
- Short below 50,735 targeting 50,628 and 50,517.
- In a gap-down scenario, the volatility can be high, so trade with caution and use proper stop-loss levels.
Risk Management Tips for Options Traders:
- In gap-up and gap-down scenarios, options premiums can inflate rapidly, so avoid chasing trades immediately after the opening bell.
- Use defined-risk strategies such as vertical spreads to limit potential losses while taking advantage of directional moves.
- Keep an eye on implied volatility (IV) before entering option trades. High IV means higher premiums but also increases the risk of rapid decay if the market stays range-bound.
Summary and Conclusion:
Bank Nifty's immediate resistance levels lie at 51,534 and 51,807, while the support levels are at 51,065 and 50,818. Whether the index breaks out of this consolidation range will depend on how it reacts to the key levels at the open. Traders should be mindful of volatile movements during the first 30 minutes and manage risk with appropriate position sizing.
Disclaimer:
I am not a SEBI registered analyst. All trading ideas shared are for educational purposes. Please conduct your own analysis or consult a financial advisor before executing any trades.
Bank NIFTY LONGBank Nifty- Set ups
MTF Analysis
Bank Nifty Yearly Demand Beakout 48636
Bank Nifty 6 Month Demand Breakout 44151
Bank Nifty Qtrly Demand Breakout 48636
Bank Nifty Monthly Demand BUFL 48608
Bank Nifty Weekly Demand DMIP 50252
Bank Nifty Weekly Demand BUFL 51994
Bank Nifty Daily Demand DMIP DMIP 49960
Time BNF Trade above 51200 Strong Confirmation Long
Weekly Demand Momentum Impulsive Patterns WDIMP
Daily Demand Momentum Impulsive Patterns DMIPS
ENTRY -1 50252
SL 49530
RISK 722
Taget as per Entry-1 60126
Points to Gain 9,874
Latest Last Swing High 54467
Latest Last Swing Low 49530
ENTRY -2 49960
SL 49654
RISK 306
Taget as per Entry-2 59834
Points to Gain 9,874
Trend Last Swing High 54467
Trend Last Swing Low 49530
BANKNIFTY KEY LEVELS FOR 14/10/2024//@description
// All credit goes to Tony for the concept of this indicator. His Trading View link: www.tradingview.com
// Note: The calculation method in this indicator differs from Tony's, but the concept is derived from his work.
**Explanation:**
This trading system helps you avoid blind trades by providing confirmation for better entries and exits. It considers volume, past prices, price range and indiavix.
**Entry/Exit Points:**
- **Entry/Exit Lines:** Use the BLACK line for long trades and the RED line for short trades, based on confirmation from your trading plan.
- **Stop Loss:** For long trades, set the stop loss at the RED line below. For short trades, set it at the BLACK line above.
- **Take Profit:** For long trades, target the next RED line above. For short trades, target the next BLACK line below.
**Timeframe:**
Use a 5 timeframe for trading.
**Risk Disclaimer:**
This setup is for educational purposes. I'm not responsible for your gains or losses. Check the chart for more details.
BANK NIFTY S/R for 14/10/24Support and Resistance Levels:
Support Levels: These are price points (green line/shade) where a downward trend may be halted due to a concentration of buying interest. Imagine them as a safety net where buyers step in, preventing further decline.
Resistance Levels: Conversely, resistance levels (red line/shade) are where upward trends might stall due to increased selling interest. They act like a ceiling where sellers come in to push prices down.
Breakouts:
Bullish Breakout: When the price moves above resistance, it often indicates strong buying interest and the potential for a continued uptrend. Traders may view this as a signal to buy or hold.
Bearish Breakout: When the price falls below support, it can signal strong selling interest and the potential for a continued downtrend. Traders might see this as a cue to sell or avoid buying.
20 EMA (Exponential Moving Average):
Above 20 EMA(50 EMA): If the stock price is above the 20 EMA, it suggests a potential uptrend or bullish momentum.
Below 20 EMA: If the stock price is below the 20 EMA, it indicates a potential downtrend or bearish momentum.
Trendline: A trendline is a straight line drawn on a chart to represent the general direction of a data point set.
Uptrend Line: Drawn by connecting the lows in an upward trend. Indicates that the price is moving higher over time. Acts as a support level, where prices tend to bounce upward.
Downtrend Line: Drawn by connecting the highs in a downward trend. Indicates that the price is moving lower over time. It acts as a resistance level, where prices tend to drop.
RSI: RSI readings greater than the 70 level are overbought territory, and RSI readings lower than the 30 level are considered oversold territory.
Combining RSI with Support and Resistance:
Support Level: This is a price level where a stock tends to find buying interest, preventing it from falling further. If RSI is showing an oversold condition (below 30) and the price is near or at a strong support level, it could be a good buy signal.
Resistance Level: This is a price level where a stock tends to find selling interest, preventing it from rising further. If RSI is showing an overbought condition (above 70) and the price is near or at a strong resistance level, it could be a signal to sell or short the asset.
Disclaimer:
I am not a SEBI registered. The information provided here is for learning purposes only and should not be interpreted as financial advice. Consider the broader market context and consult with a qualified financial advisor before making investment decisions.
BANK NIFTY OCTOBER 3RD WEEK ANALYSIS Banknifty is looking neutral I'm not very bearish neither expecting big bearish move. I feel Buy on dips will work this week . Banknifty can go upto 52700 in the upcoming week. View remains invalidated once banknifty breaches 49600 on the downside. Levels are marked in chart posted.
[INTRADAY] #BANKNIFTY PE & CE Levels(11/10/2024)Today will be slightly gap down expected in banknifty. After opening if banknifty starts trading below 51450 level then possible downside upto 51000 level in today's session. This downside can further extend in case banknifty gives breakdown of 50950 level. Upside rally expected if banknifty sustain above 51550 level in today's session.
BANKNIFTY : Trading Levels and Plan for 11-Oct-2024Nifty Trading Plan for 11-Oct-2024
Previous Day's Chart Pattern Recap
On 10th October, Nifty opened near support levels and recovered to the Resistance level of 51533 from the lows, after breaking this resistance prices could manage to hold this level. The price action suggests that Nifty might be preparing for a breakout or breakdown based on the opening scenario today. Key zones of resistance and support are well defined, and traders should be prepared for a move in either direction.
Opening Scenarios
Gap Up Opening (+100 points or more):
If Nifty opens with a gap up near the "Resistance for Sideways" at 25,299–25,322, there is a chance for profit booking around the 25,429–25,474 zone. A sustained move above 25,322 could signal further bullish momentum, while failure to hold this level could bring Nifty back down to test the "Opening Resistance" zone at 25,172.
Trade Setup:
- Buy above 25,322 with a stop loss below 25,250.
- Targets: 25,429 and 25,474.
- Look for short opportunities if Nifty fails to break above 25,322.
Flat Opening:
A flat opening around the current price level near 25,008 would put Nifty right at the "Opening Support" zone (24,965–25,008). This could lead to a period of sideways movement before a breakout. A breakout above 25,172 will take Nifty towards 25,299, while a breakdown below 24,965 may result in a test of lower support at 24,900.
Trade Setup:
- Buy above 25,172 with targets of 25,299 and 25,322.
- Short below 24,965 targeting 24,900 and 24,809.
- Wait for a clear breakout before entering any trades, as this scenario could see choppy price action.
Gap Down Opening (-100 points or more):
A gap down could bring Nifty closer to the "Opening Support" at 24,965–24,900. If Nifty holds above this zone, we might see a quick reversal back towards 25,172. However, if Nifty breaks below 24,900, it could test the next strong support near 24,809.
Trade Setup:
- Buy near 24,900 with targets of 25,008 and 25,172.
- Short below 24,900 with targets of 24,809 and 24,750.
- Gap-down scenarios tend to be volatile, so trade cautiously and wait for price confirmation.
Risk Management Tips for Options Traders:
- Avoid entering trades in the first 15-30 minutes to avoid whipsaw movements.
- Use stop-losses that respect key support/resistance zones, especially when trading at-the-money options.
- When volatility is high, consider using spreads (e.g., bull call or bear put spreads) to limit potential losses while maintaining profitability.
- Always set a defined risk level per trade, and do not over-leverage in options trading.
Summary and Conclusion:
Nifty is at a critical juncture with key resistance at 25,172 and support at 24,900. A gap-up could push Nifty towards profit booking zones, while a gap-down may test the lower support levels. Regardless of the opening scenario, patience and proper risk management are essential for capturing the best opportunities. Watch for price action confirmation at key levels before taking a trade.
Disclaimer:
I am not a SEBI registered analyst. All trading ideas shared are for educational purposes. Please conduct your own analysis or consult a financial advisor before executing any trades.
BANKNIFTY Key Levels for 11/10/2024//@description
// All credit goes to Tony for the concept of this indicator. His Trading View link: www.tradingview.com
// Note: The calculation method in this indicator differs from Tony's, but the concept is derived from his work.
**Explanation:**
This trading system helps you avoid blind trades by providing confirmation for better entries and exits. It considers volume, past prices, price range and indiavix.
**Entry/Exit Points:**
- **Entry/Exit Lines:** Use the BLACK line for long trades and the RED line for short trades, based on confirmation from your trading plan.
- **Stop Loss:** For long trades, set the stop loss at the RED line below. For short trades, set it at the BLACK line above.
- **Take Profit:** For long trades, target the next RED line above. For short trades, target the next BLACK line below.
**Timeframe:**
Use a 5 timeframe for trading.
**Risk Disclaimer:**
This setup is for educational purposes. I'm not responsible for your gains or losses. Check the chart for more details.
BANK NIFTY S/R for 11/10/24Support and Resistance Levels:
Support Levels: These are price points (green line/shade) where a downward trend may be halted due to a concentration of buying interest. Imagine them as a safety net where buyers step in, preventing further decline.
Resistance Levels: Conversely, resistance levels (red line/shade) are where upward trends might stall due to increased selling interest. They act like a ceiling where sellers come in to push prices down.
Breakouts:
Bullish Breakout: When the price moves above resistance, it often indicates strong buying interest and the potential for a continued uptrend. Traders may view this as a signal to buy or hold.
Bearish Breakout: When the price falls below support, it can signal strong selling interest and the potential for a continued downtrend. Traders might see this as a cue to sell or avoid buying.
20 EMA (Exponential Moving Average):
Above 20 EMA(50 EMA): If the stock price is above the 20 EMA, it suggests a potential uptrend or bullish momentum.
Below 20 EMA: If the stock price is below the 20 EMA, it indicates a potential downtrend or bearish momentum.
Trendline: A trendline is a straight line drawn on a chart to represent the general direction of a data point set.
Uptrend Line: Drawn by connecting the lows in an upward trend. Indicates that the price is moving higher over time. Acts as a support level, where prices tend to bounce upward.
Downtrend Line: Drawn by connecting the highs in a downward trend. Indicates that the price is moving lower over time. It acts as a resistance level, where prices tend to drop.
RSI: RSI readings greater than the 70 level are overbought territory, and RSI readings lower than the 30 level are considered oversold territory.
Combining RSI with Support and Resistance:
Support Level: This is a price level where a stock tends to find buying interest, preventing it from falling further. If RSI is showing an oversold condition (below 30) and the price is near or at a strong support level, it could be a good buy signal.
Resistance Level: This is a price level where a stock tends to find selling interest, preventing it from rising further. If RSI is showing an overbought condition (above 70) and the price is near or at a strong resistance level, it could be a signal to sell or short the asset.
Disclaimer:
I am not a SEBI registered. The information provided here is for learning purposes only and should not be interpreted as financial advice. Consider the broader market context and consult with a qualified financial advisor before making investment decisions.
Markets preparing for healthy correction (bank nifty).An breakdown of long term trendline is anticipated with multiple retest of trendline support making it weak.
Aggressive traders can short futures with an Sl above 52070 closing basis.
Expected target 49000-48500 with an breakdown of swing low followed by an fresh low.(Trailing basis)
