We have witnessed Banknifty taking a breakout from the downward channel.
Below are some trade setups possibilities.
1. Banknifty will reverse from previous move's retracement levels like 0.54, 0.618, 0.74 or 0.786 (shown on the chart). Take trade only after confirming the reversal signal.
Please also note the downward trendline of lower highs on daily chart.
2. It will retest the support zones 26100 - 26250. (Previous channel resistance will act as support).
3. Expect a bounce for the higher level retracement.
Below are some trade setups possibilities.
1. Banknifty will reverse from previous move's retracement levels like 0.54, 0.618, 0.74 or 0.786 (shown on the chart). Take trade only after confirming the reversal signal.
Please also note the downward trendline of lower highs on daily chart.
2. It will retest the support zones 26100 - 26250. (Previous channel resistance will act as support).
3. Expect a bounce for the higher level retracement.