I published last week about shorting bank nifty at 22800 levels as it was breaking out of a rising channel in the 5M time frame. Now that it has done it and resumed the downtrend, let's look at a slightly broader time frame.
Here, 1) Clearly, the H&S pattern forming at the top of a long uptrend is playing out. It breached the neckline briefly yesterday around the close.
2) There is a big gap just below the current prices, which would be filled in if the H&S breaks out.
3) There is clear multiple negative divergences on the MACD vs the price charts.
I'd recommend a short for the levels of 22200-300 if there is confirmation of the H&S break.
Bank nifty again tried to go above the neckline (resistance) but reversed from there. Going as per plan and should reach 22300 within a couple of trading sessions. Enjoy :)
AMBRISH
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Thanks .
Rahulsarna
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BN has broken the H&S decisively on a closing basis. What's even better is that it went all the way back to the neckline and re- tested the support turned resistance line and then came down back to 22600 levels.
22300 is coming soon :)