Price Action Analysis:
On a weekly time frame price action in the current week formed a Bullish SKR price bar pattern to final close at 21754. In the previous week price action resulted into a down bar. With the start of the week price violated the low of the previous week and recorded a low at 21031. Throughout the current week the low of first day of the week was protected and finally managed to close at 21754 above the preceding week close at 21640. The important aspect to keep in mind is that the current week price bar is indeed a down bar but the close of the current bar closing above the previous close makes it a Bullish SKR price bar.
The close of the current price bar is in the upper one third of the range indicating bulls in control. The price bar has a smaller body (210) compared to the wick ((695) both upper and lower wick combined) which raises a question about the extent of participation. The length of the lower wick (513) is 2.81 times of the upper wick (183). The buying pressure of the current week (722) is 3.9 times that of weekly selling pressure (183). The position of close, small body, larger lower wick small lower wick, buying and selling pressure indicates a possible turnaround in the existing direction of price. The turnaround will be confirmed only when price first breaks the high (21937) of Bullish SKR without violating the low (21031). Price breaking the low of Bullish SKR invalidates the Bullish expectation.
On a daily time frame price action formed an Inside bar on Friday. The prior bar, the bar before the Inside Bar, is referred to as the “Mother Bar”. With the completion of an Inside Bar one can observe that price neither surpassed the high of mother bar nor violated the low of the preceding bar indicating indecision. Inside Bar also indicate that the prevailing momentum has dissipated because buyers and sellers are equally matched and have no conviction. An Inside Bar usually represents market indecision. In terms of demand and supply, an Inside Bar indicates that, demand and supply are in state of equilibrium and hence a period of consolidation. With an Inside Bar we neither have a bullish nor a bearish expectation and hence form a neutral expectation. If price surpasses and close above the high of the mother bar then we form a Bullish expectation and if price breaks and close below the low of mother bar then we form a Bearish expectation. With this detailed price action analysis let’s just follow the foot prints of price. For trading decision one need to wait for a suitable Low Risk High Probability trade opportunities.
The current weekly volatility decreased to 2.5 compared to the previous weekly volatility of 3.6. The probable weekly returns for the upcoming week is 545 points from the weekly close, with a measured move in increments of 227 points.
Stock Market Seasonality
August 8 marks a very important date according to seasonality. The day is considered as a minor seasonal date which is halfway between the major seasonal levels of June 22 and September 23. On this day price action formed an Inside Bar and hence the high and low of the mother bar will be of utmost importance in determining the future price action.
Trade Plan
The key level of the existing trend is at 21034 and the critical level at 21027. The point of control of Bank Nifty spot for the upcoming week is in the zone of 21484. Currently price is trading above the minor resistance zone at 21710. Price staying above the minor resistance zone of 21710 can move towards the major resistance zone at 21937. Price slipping below the minor resistance at 21710 can move towards the point of control at 21484. Price surpassing the major resistance zone can further move towards the zone of 22163 and 22389.
Price below the point of control at 21484 can find minor support in the zone of 21258 and major support in the zone of 21032. Price breaking below the major support zone can move lower towards the zone of 20805 and 20579.
Disclaimer
All investment ideas published are for educational purpose only. All investments and trading decisions involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
On a weekly time frame price action in the current week formed a Bullish SKR price bar pattern to final close at 21754. In the previous week price action resulted into a down bar. With the start of the week price violated the low of the previous week and recorded a low at 21031. Throughout the current week the low of first day of the week was protected and finally managed to close at 21754 above the preceding week close at 21640. The important aspect to keep in mind is that the current week price bar is indeed a down bar but the close of the current bar closing above the previous close makes it a Bullish SKR price bar.
The close of the current price bar is in the upper one third of the range indicating bulls in control. The price bar has a smaller body (210) compared to the wick ((695) both upper and lower wick combined) which raises a question about the extent of participation. The length of the lower wick (513) is 2.81 times of the upper wick (183). The buying pressure of the current week (722) is 3.9 times that of weekly selling pressure (183). The position of close, small body, larger lower wick small lower wick, buying and selling pressure indicates a possible turnaround in the existing direction of price. The turnaround will be confirmed only when price first breaks the high (21937) of Bullish SKR without violating the low (21031). Price breaking the low of Bullish SKR invalidates the Bullish expectation.
On a daily time frame price action formed an Inside bar on Friday. The prior bar, the bar before the Inside Bar, is referred to as the “Mother Bar”. With the completion of an Inside Bar one can observe that price neither surpassed the high of mother bar nor violated the low of the preceding bar indicating indecision. Inside Bar also indicate that the prevailing momentum has dissipated because buyers and sellers are equally matched and have no conviction. An Inside Bar usually represents market indecision. In terms of demand and supply, an Inside Bar indicates that, demand and supply are in state of equilibrium and hence a period of consolidation. With an Inside Bar we neither have a bullish nor a bearish expectation and hence form a neutral expectation. If price surpasses and close above the high of the mother bar then we form a Bullish expectation and if price breaks and close below the low of mother bar then we form a Bearish expectation. With this detailed price action analysis let’s just follow the foot prints of price. For trading decision one need to wait for a suitable Low Risk High Probability trade opportunities.
The current weekly volatility decreased to 2.5 compared to the previous weekly volatility of 3.6. The probable weekly returns for the upcoming week is 545 points from the weekly close, with a measured move in increments of 227 points.
Stock Market Seasonality
August 8 marks a very important date according to seasonality. The day is considered as a minor seasonal date which is halfway between the major seasonal levels of June 22 and September 23. On this day price action formed an Inside Bar and hence the high and low of the mother bar will be of utmost importance in determining the future price action.
Trade Plan
The key level of the existing trend is at 21034 and the critical level at 21027. The point of control of Bank Nifty spot for the upcoming week is in the zone of 21484. Currently price is trading above the minor resistance zone at 21710. Price staying above the minor resistance zone of 21710 can move towards the major resistance zone at 21937. Price slipping below the minor resistance at 21710 can move towards the point of control at 21484. Price surpassing the major resistance zone can further move towards the zone of 22163 and 22389.
Price below the point of control at 21484 can find minor support in the zone of 21258 and major support in the zone of 21032. Price breaking below the major support zone can move lower towards the zone of 20805 and 20579.
Disclaimer
All investment ideas published are for educational purpose only. All investments and trading decisions involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
