Banknifty - Important levels for the coming week
MONTHLY CHART: This month' index has been trading at all-time highs, it exceeded the high made (32773.85) in December 2019, now sustaining above it, is going to be more important to see new highs moving forward.
FIBONACCI Support: 34200
Price Support 32700
RSI: 65
Price action: Since September 2020, prices had been up and the best part is that the prices are making higher highs, higher lows every month, recent month candle looks decisive till now, and closing above December 2019 would further confirm the decisiveness shown by the bulls this month and they may likely to carry this craziness to the new highs in the coming months.
Weekly chart: On the weekly chart, the index had seen a breakout, and the breakout happens with a decisive bullish candle with good volume.
RSI: 74.6 ( Here is the catch, as these are the levels, from where we had seen prices going sideways for few months and later crashed, hence a little bit of caution is required, and watch price action closely).
Price Support: 30900
PRICE ACTION:
• Index had shown spectacular move of approx 60% in past four months, followed by a shallow correction that lasted briefly( 3 weeks to be specific).
• Rally then resumed decisively.
• Although we see some pause in momentum last week and index formed inside small range Doji candle, which is an indication of loss in momentum, or you can say the absence of new buyers, maybe because price ran so fast, and buyers are no more comfortable buying at current prices, might be looking forward to some consolidation or correction to enter new trades into the markets.
• This week's candle looks like a shooting star candle, which again confirms the absence of new buying and also signals some supply pressure at these levels.
DAILY: Index had been down and forming lower low, lower highs candles, and somehow daily chart is quite in the alignment of the weekly chart, and this indicates, correction can move little further.
RSI: 62
Support: 29000
Price Action: For the past 3 sessions, the index had been forming bearish candles with a lower low, lower highs and prices opened gap down today only to close near day’s low, which further reinforces the supply pressure at higher levels.
Since we are seeing down days in a row, the index might see some up days in this correction leg, or we may see also some sharp sell-off because bull market corrections are mostly sharp and brief.
HERE IS THE DEAL, prices definitely looks extended on the weekly chart, and due to make some correction and if the correction happens, keep these levels, 32700 and 30900- 29000 in mind, as these are important level and prices should not move beyond it, it has to go further up and continue upside craziness.
The bottom line is above 30900- 29000 trend is intact on the upside and it will be a buy-on-dips market for me, please do your own research and let me know your views on the index in the comment section below.
PLEASE SHARE IF YOU FIND IT INFORMATIVE.
FIBONACCI Support: 34200
Price Support 32700
RSI: 65
Price action: Since September 2020, prices had been up and the best part is that the prices are making higher highs, higher lows every month, recent month candle looks decisive till now, and closing above December 2019 would further confirm the decisiveness shown by the bulls this month and they may likely to carry this craziness to the new highs in the coming months.
Weekly chart: On the weekly chart, the index had seen a breakout, and the breakout happens with a decisive bullish candle with good volume.
RSI: 74.6 ( Here is the catch, as these are the levels, from where we had seen prices going sideways for few months and later crashed, hence a little bit of caution is required, and watch price action closely).
Price Support: 30900
PRICE ACTION:
• Index had shown spectacular move of approx 60% in past four months, followed by a shallow correction that lasted briefly( 3 weeks to be specific).
• Rally then resumed decisively.
• Although we see some pause in momentum last week and index formed inside small range Doji candle, which is an indication of loss in momentum, or you can say the absence of new buyers, maybe because price ran so fast, and buyers are no more comfortable buying at current prices, might be looking forward to some consolidation or correction to enter new trades into the markets.
• This week's candle looks like a shooting star candle, which again confirms the absence of new buying and also signals some supply pressure at these levels.
DAILY: Index had been down and forming lower low, lower highs candles, and somehow daily chart is quite in the alignment of the weekly chart, and this indicates, correction can move little further.
RSI: 62
Support: 29000
Price Action: For the past 3 sessions, the index had been forming bearish candles with a lower low, lower highs and prices opened gap down today only to close near day’s low, which further reinforces the supply pressure at higher levels.
Since we are seeing down days in a row, the index might see some up days in this correction leg, or we may see also some sharp sell-off because bull market corrections are mostly sharp and brief.
HERE IS THE DEAL, prices definitely looks extended on the weekly chart, and due to make some correction and if the correction happens, keep these levels, 32700 and 30900- 29000 in mind, as these are important level and prices should not move beyond it, it has to go further up and continue upside craziness.
The bottom line is above 30900- 29000 trend is intact on the upside and it will be a buy-on-dips market for me, please do your own research and let me know your views on the index in the comment section below.
PLEASE SHARE IF YOU FIND IT INFORMATIVE.