Double Top Pattern 1. Double Top Pattern is a Trend Reversal Pattern. 2. In this case the trend prior to the Double Top Pattern was clearly an Uptrend. 3. Bandhan Bank broke the confirmation line and a good entry, in this case, would have been @ 374 on 15.01.2021 using the Retest Entry Technique. 4. Target would have been the Height of the Double Top Pattern or 2R.
Ascending Triangle Pattern 1. Ascending Triangle Pattern is a Trend Continuation Pattern and should be identified in an Uptrend. 2. Similarly, Descending Triangle Pattern is also a Continuation Pattern and should be identified in a Downtrend.
Bandhan Bank is forming an Ascending Triangle Pattern in a downtrend. Is it still valid to trade this pattern?. Nonetheless, the fact here is that the buyers seem to be in control forming higher lows and if the resistance of 350 is broken we can go for a long trade with a target of 380 (confirmation line of the double top pattern) or 400 (width of the base of the triangle). But it all depends on how the stock behaves at the breakout or breakdown.
Nicely Done .. More probability of hitting 380 as T1 target definitely can Go long , But this is highly volatile stock . Many other banking stock are also available at good discount of 10% from their peak ( ICICI / HDFC / KOTAK )
arunkrmishra2000
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@nitinsgadekar69, Thank you. What you are saying is true but on Bandhan Bank's defence, it has made a beautiful pattern :)
bandlamudianilkumar
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Can you please advise on How it will move going forward?
Aj0615
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buy on charts of Bandhan downside risk 290 ( 17 from CMP ) and T1- 325/ T2- 356, good risk-reward ratio. I'm bullish too
for more support bank nifty is also going up
Sudarshan1903
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The analysis is clear and perfectly understandable to a beginner/rookie like me. Thanks for this amazing chart. [ Personally ] I feel we can have a better understanding of where Bandhan bank might move with the RSI or the Stochastic Oscillator. I think if we have the cross at above 70 or just below 70 [ in the RSI] will hopefully be a good sell signal.
arunkrmishra2000
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@Sudarshan1903, Thank you for the encouragement. I am a rookie too. Due to some personal reasons, I stopped doing analysis. Now with this encouragement i am going to start again :)