#BANKNIFTY looking good for a possible upmove short term
The bank index has been moving inside an upward channel from over a year respecting the channel tops and bottoms twice each with good patterns and structures.
The index pulled back around 4000 points in the month of January 2024 and since then has been steadily moving up forming a good HH (higher high) and HL (higher low) sequence.
The channel top touch at the end of the year has been the laying stone for the bullish "Head and Shoulder" pattern (graphically represented in the chart) and is now on the verge of breaking out. Though the pattern signifies a strong bullish move, I see a hurdle (wish it’s not :-)) in another 700 points otherwise a decisive breakout from here should propel higher.
Few technical considerations:
The momentum indicators are healthy and a recent crossover of MACD is a good sign.
Trading currently above cloud.
Note: Index movement is displaying a repetitive movement (highlighted number (1),(2) and (3) before the breakouts .
The index pulled back around 4000 points in the month of January 2024 and since then has been steadily moving up forming a good HH (higher high) and HL (higher low) sequence.
The channel top touch at the end of the year has been the laying stone for the bullish "Head and Shoulder" pattern (graphically represented in the chart) and is now on the verge of breaking out. Though the pattern signifies a strong bullish move, I see a hurdle (wish it’s not :-)) in another 700 points otherwise a decisive breakout from here should propel higher.
Few technical considerations:
The momentum indicators are healthy and a recent crossover of MACD is a good sign.
Trading currently above cloud.
Note: Index movement is displaying a repetitive movement (highlighted number (1),(2) and (3) before the breakouts .
Trade closed: target reached:
550 points captured ~