Distinct and clear patterns are usually good for learning price action.
Current H&S formed in bank nifty ticks all checkboxes.
1. It is formed after reasonable up trend.
2. Pattern appears clean.
3. Target is reaching a logical level of 200dma
4. Most of positive news are gone by and interest rate reduction is still 2~3 quarters delayed.
This may not be total trend reversal but around 4% downside is possible. While such move may not be useful for swing traders, it can create good buying opportunity in your favorite banking stock.
Current H&S formed in bank nifty ticks all checkboxes.
1. It is formed after reasonable up trend.
2. Pattern appears clean.
3. Target is reaching a logical level of 200dma
4. Most of positive news are gone by and interest rate reduction is still 2~3 quarters delayed.
This may not be total trend reversal but around 4% downside is possible. While such move may not be useful for swing traders, it can create good buying opportunity in your favorite banking stock.
