NIFTY BANK At Multiple Support Zone : Observing A Buy Setup

Aug 13

The extension phase in Nifty Bank wrapped up on July 4th, 2024, hitting a fresh high. Since then, we've been in a correction phase.

Now, let's zoom in on the 4-hour chart. What do we see? Multiple support levels, and they're not just any support levels:

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  A trendline that's been holding steady since October 2023.
  The 200 EMA, a key moving average to keep an eye on.
  A previous resistance zone, which now should flip into a strong support.
  The 0.5 Fibonacci support level, adding to the mix.
  

Right now, the price is sitting snugly at all these levels, creating a sweet spot of confluence.

What should traders be watching for? Look out for bullish candlestick patterns like a Bullish Pin Bar, Morning Star, a Bullish Engulfing etc. These could be the signals we need.

If this robust support area holds, Nifty Bank is likely to target the 51000-51150 zone – not only a psychological level but also the upper boundary of the channel we’ve marked on the chart.

Trade smart, and always weigh your risk before you get greedy on reward.

Regards,
Rafat K.

Aug 16

Note

Quick update on the Nifty Bank setup we’ve been eyeing.

On the hourly time frame, Nifty Bank has just formed a Bullish Morning Star Candlestick pattern. This is exactly the kind of signal we’ve been waiting for. The pattern has appeared right at the confluence of our key support levels, making this an area to watch closely.

This setup could present a solid entry point for those who’ve been waiting on the sidelines. But remember, this is all about education – not a buy call. Always do your own research, and keep your risk in check before making any decisions.

Aug 20

Trade closed: target reached

Hey everyone, a quick update on the Nifty Bank setup we’ve been tracking.

The price has now reached our target of 51000. This was a key psychological level and the upper boundary of the channel we had marked. The bullish Morning Star Candlestick pattern we spotted earlier played out nicely, hitting the target as expected.

Remember, this is all about learning and staying sharp. The market doesn’t always follow our plans, but when it does, it's a great reminder of the importance of patience and strategy.

As always, trade smart, manage your risk, and don’t get greedy on the reward.

Regards,
Rafat K.