BANKNIFTY1! trade ideas
The BankNIFTY Index Futures chart - Fibonacci Trading StrategyThe BankNIFTY Index Futures chart presents a fascinating case for Fibonacci retracement analysis. After a significant downtrend from the peak at 55,000, the index has shown a series of bounces and pullbacks, which are classic signals for Fibonacci traders.
Key Observations:
Downtrend Confirmation: The initial peak around 55,000 was followed by a sharp decline, confirming a bearish trend. This sets our high point for Fibonacci levels.
Fibonacci Levels:
From the high at 55,000 to the low at 50,130, key Fibonacci retracement levels are established:
23.6% at 51,288
38.2% at 52,003
50% at 52,582
61.8% at 53,160
78.6% at 53,984
Support and Resistance: The chart shows multiple touches around the 50% (52,700) and 61.8% (53,160) levels, indicating strong support/resistance zones. The recent price action around these levels suggests potential reversal or continuation signals.
Trading Strategy:
Long Position: Consider entering a long position if the price finds support at the 50% or 61.8% Fibonacci levels, especially with confirmation from other indicators like RSI or MACD. Stop loss can be set below the 78.6% level or recent swing lows.
Short Position: If the price breaks below the 50% level with volume, it might target the 61.8% or even the 78.6% Fibonacci level for further downside. Confirmation from bearish candlestick patterns or momentum indicators would strengthen this trade.
Breakout Strategy: Watch for a breakout above the 61.8% or 78.6% levels. A confirmed breakout could lead to a new uptrend, with targets potentially aiming for the previous high or higher Fibonacci extensions.
Volume Analysis: Notice the spike in volume around the recent lows and subsequent recovery. This could indicate strong buying interest at lower levels, suggesting a potential bullish reversal or at least a strong support zone.
Risk Management: Always use stop losses to manage risk, especially in volatile markets like BankNIFTY. Adjust your position size according to your risk tolerance and the volatility of the instrument.
This Fibonacci-based approach provides a structured way to navigate the market's waves, leveraging historical price action for future predictions.
Review and plan for 3rd December 2024 Nifty future and banknifty future analysis and intraday plan.
This video is for information/education purpose only. you are 100% responsible for any actions you take by reading/viewing this post.
please consult your financial advisor before taking any action.
----Vinaykumar hiremath, CMT
The BANK NIFTY futures chart is signalling critical levels🚀 Attention NSE and StockMarketIndia traders!
The BANK NIFTY futures chart is signalling critical levels you don't want to miss. We've got a strong resistance around 53,160, marked by a Fibonacci retracement level at 0.618 level.
This level has been tested multiple times, showing the market's hesitation to break through. If we see a close above this level with volume, it could indicate a bullish breakout, targeting the next Fibonacci level at 0.786. On the downside, watch the 52000 supports, which aligns with the 0.382 Fibonacci retracement level.
A break below this could lead to a deeper correction, potentially testing the psychological 50,000 mark before finding a base.
As the Fibonacci retracement shows the compelling price swings between the levels of 0.382 & 0.5 at the horizon. The Fibonacci time-based extension predict the price movement at the vertical time frame.
Volume spikes are crucial here; increased volume on upward moves could validate a bullish scenario, while high volume on declines would suggest a bearish continuation.
Stay vigilant, set your stop-losses wisely, and be ready for volatility. The market is at a pivotal point. Follow @stocktechbot for continuous updates and insights.
Review and plan for 27th November 2024Nifty future and banknifty future analysis and intraday plan.
This video is for information/education purpose only. you are 100% responsible for any actions you take by reading/viewing this post.
please consult your financial advisor before taking any action.
----Vinaykumar hiremath, CMT
Review and plan for 21st November 2024Nifty future and banknifty future analysis and intraday plan.
This video is for information/education purpose only. you are 100% responsible for any actions you take by reading/viewing this post.
please consult your financial advisor before taking any action.
----Vinaykumar hiremath, CMT