Bank nifty showed a fantastic rally after breaking the 36100 price level. If it continues to sustain above 36300, then go long. Target 1 is given by AB=CD pattern with 2 as fib extension.
If bank nifty manages above target 1 then trail stop loss until target 3. Targets 2 and 3 are in the PRZ, so book your profits timely. Above this PRZ, there will be another rally with shorts covering but considering today's rally, the index may undergo consolidation or correction.
Place stop loss at 36134 price level. The logic for the stop loss is simple, 36100 was a strong resistance level. Now it became a support level.
Happy trading :)
This is not an investment idea. Please consult your financial advisor before investing.
Trade active
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Target 1 reached :)
Trade closed: target reached
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All the 3 targets are reached. Congrats :)
A violent reversal is seen after failing to break the PRZ
Comment
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Today with a gap-up opening, the bank nifty touched 37140 which is 1.618 fib extension. Hence took a reversal. Above this level, expect massive short covering.