The opening candle shows signs of demand due to the wick size and bullish
closing. But as price approached the resistance level
, it showed no signs of strength, which would show that Banknifty
is going to break the level, and so in today's closing, price hovered near the resistance level
and closed near that. One of the candles near the resistance is a bearish pin bar
, suggesting supply and the next candle closed indecisively due to it having a wick but price closing above the opening, causing the candle to close green. Bias is still negative and any confirmation which I get will make my bias even stronger. Price action wise a falling wedge
is visible on the chart, which is a bullish pattern
. But if the market is bearish
, even bullish
patterns fail and may result in fakeout. Be cautious.
This is an educational post and all the opinions provided above and on charts are simply speculation. Nothing is 100% in stock market.
Consult your financial advisor before taking trades
I do not recommend taking trades according to my analysis as you may incur loss, for which I am not responsible.