Bank Nifty Weekly Technical Outlook – 11.07.2020
Price Action Analysis:
Bank Nifty continued to edge higher for the fourth consecutive week and formed a pin bar on weekly time frame. The weekly close 22399 is slightly higher than the weekly open 22271. The size of the wicks (both upper and lower wick combined) is 7 times that of the body and, the length of the upper wick is 2.9 times that of the lower wick indicating a possible turnaround of the existing direction of price. The confirmation of turnaround comes only when price breaks below the weekly low.
On a daily time frame price formed a bearish pin bar on Wednesday with higher volume compared to the previous day volume. With a bearish pin bar we formed a bearish expectation, but the expectation remained muted on Thursday with the formation of an inside bar. Price neither breaking the low or the high of the bearish pin bar was the reason behind the muted bearish expectation. The weekly close occurred with a strong bearish bar with a close in lower one-third of the range indicating sellers in control. A large price bar body indicates strong bearishness with active participation. With a breakout setup we form a bearish expectation. The bearish expectation is validated only when price break below the low of the bearish bar of Friday.
The current weekly volatility decreased to 5.5 compared to the previous week volatility of 6.7. The probable weekly returns is of 1243 points from the weekly close, with a measured move in increments of 260 points.
Trade Plan
The key level of the existing trend is at 20926 and the critical level at 19507. The point of control of Bank Nifty Spot for the upcoming week is in the zone of 22561. Price staying above the point of control can find minor resistance in the zone of 22821 and major resistance in the zone of 23081. Price surpassing the major resistance zone can further move towards the zone of 23341 and 23601. Price staying below the point of control can find minor support in the zone of 22301 and major support in the zone of 22402. Price breaking below the major support zone can move lower towards the zone of 22041 and 21781.
Disclaimer
All investments 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.
Bank Nifty continued to edge higher for the fourth consecutive week and formed a pin bar on weekly time frame. The weekly close 22399 is slightly higher than the weekly open 22271. The size of the wicks (both upper and lower wick combined) is 7 times that of the body and, the length of the upper wick is 2.9 times that of the lower wick indicating a possible turnaround of the existing direction of price. The confirmation of turnaround comes only when price breaks below the weekly low.
On a daily time frame price formed a bearish pin bar on Wednesday with higher volume compared to the previous day volume. With a bearish pin bar we formed a bearish expectation, but the expectation remained muted on Thursday with the formation of an inside bar. Price neither breaking the low or the high of the bearish pin bar was the reason behind the muted bearish expectation. The weekly close occurred with a strong bearish bar with a close in lower one-third of the range indicating sellers in control. A large price bar body indicates strong bearishness with active participation. With a breakout setup we form a bearish expectation. The bearish expectation is validated only when price break below the low of the bearish bar of Friday.
The current weekly volatility decreased to 5.5 compared to the previous week volatility of 6.7. The probable weekly returns is of 1243 points from the weekly close, with a measured move in increments of 260 points.
Trade Plan
The key level of the existing trend is at 20926 and the critical level at 19507. The point of control of Bank Nifty Spot for the upcoming week is in the zone of 22561. Price staying above the point of control can find minor resistance in the zone of 22821 and major resistance in the zone of 23081. Price surpassing the major resistance zone can further move towards the zone of 23341 and 23601. Price staying below the point of control can find minor support in the zone of 22301 and major support in the zone of 22402. Price breaking below the major support zone can move lower towards the zone of 22041 and 21781.
Disclaimer
All investments 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.
Comment:
Price Opened above the Point Of Control at 22613 and formed a Bearish Reversal Price Bar. The OCR Bearish Trade Setup was seen near the point of control. Below the point of control price achieved the first and the second target of 22301 and 22402.
Point of Control: 22561
Resistance: 22821 | 23081 | 23341 | 23601
Support: 22301 | 22402 | 22041 | 21781