Nifty Bank IndexUpdated BankNifty at an Interesting Juncture
BankNifty is currently positioned at a pivotal point, presenting traders with a potential opportunity. From a statistical perspective, the presence of a head and shoulder pattern at an all-time high often indicates a forthcoming correction. If this head and shoulder pattern is invoked, we could witness a correction ranging between 1500 to 1900 points in BankNifty.
The chart elucidates the situation clearly. There is a robust support level at 44,000, with resistance levels situated at 45,000 and 45,500. It's essential to remember that trading is fundamentally about gauging probabilities. If a downward movement ensues, it could drive BankNifty to levels around 42,000. Conversely, if the head and shoulder pattern does not materialize, the index might challenge the right shoulder high, which corresponds to the first resistance level. Should it breach the second resistance at 45,500, it becomes highly probable that the all-time high will be surpassed.
Trade wisely, and always consider the inherent risks and probabilities.
The chart elucidates the situation clearly. There is a robust support level at 44,000, with resistance levels situated at 45,000 and 45,500. It's essential to remember that trading is fundamentally about gauging probabilities. If a downward movement ensues, it could drive BankNifty to levels around 42,000. Conversely, if the head and shoulder pattern does not materialize, the index might challenge the right shoulder high, which corresponds to the first resistance level. Should it breach the second resistance at 45,500, it becomes highly probable that the all-time high will be surpassed.
Trade wisely, and always consider the inherent risks and probabilities.
Note
The strong support acted like resistance today. If 44015 is taken out tommorow . A nice trade could be active for longs with a small SLNote
price still toying with 44000 lvls. Lets see which way it takes a moveNote
price still not able to get out of its fascination of 44000 lvls, intraday is fine but no positional yetNote
If price closes below 44000 lvl , it could be a signal for positional shortNote
most of the time when head and shoulder fails it takes out the head high , lets see if this holds true for banknifty
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