Rise in Bank Nifty seems corrective in nature taking a form of double correction WXY.So far we are done with wave W and in today's trading session we are seeing price giving confirmation of wave X end when it broke 36000 on the up side.
Generally in double correction wave Y achieves 100% extention target of wave W however it can even end at 61.8% extention.
One can expect price to continue its up move till the rectangle shown.
Initiate longs at cmp of 36300 sl for the trade would be closing below 36000 and target wud be 38200 and 39900
Disclaimer:THis are jsut my views on the index no position should be buuild or exited on its basis.
We are now wave Y,sub wave B.This sub wave B has taken a form of bow-tie diametric pattern.This diametric pattern has sub waves a,b,c,d,e,f & g.It seems like we are currently in g leg which can end near 37200-37100.If we get bullish reversal candle on hourly chart near 37200 then one can initiate longs for a target of 38700 and 39600 with a stop-loss of 37100 which should be trailed if prices moves in favour. Reason for 37200 to act as strong support: 1)We have a gap support around 37200 2)61.8% retracement of entire wave A of wave Y is coming at 37150. 3)Leg G of diametric pattern usually extends upto 6108% of Leg A,which is coming at 37194.
Ignore this analysis if prices breaks 37100 on the down side an trades below it for more then 1 hour.Also we must have a bullish reversal candle between 37100-37200 zone and long's should only be initiated once we cross the high of this reversal candle.
Personally i feel that this might be the last leg of an upmove as all the major time cycles have turned negative,hence position sizing should be done keeping once risk apetite in mind.One should not over leverage.And one should follow stop-loss both protective and trailing.
Disclaimer:This are just my views on the index.Trades should not be taken solely on its basis.posting this for my future reference.
We are now wave Y,sub wave B.This sub wave B has taken a form of bow-tie diametric pattern.This diametric pattern has sub waves a,b,c,d,e,f & g.It seems like we are currently in g leg which can end near 37200-37100.If we get bullish reversal candle on hourly chart near 37200 then one can initiate longs for a target of 38700 and 39600 with a stop-loss of 37100 which should be trailed if prices moves in favour.
Reason for 37200 to act as strong support:
1)We have a gap support around 37200
2)61.8% retracement of entire wave A of wave Y is coming at 37150.
3)Leg G of diametric pattern usually extends upto 6108% of Leg A,which is coming at 37194.
Ignore this analysis if prices breaks 37100 on the down side an trades below it for more then 1 hour.Also we must have a bullish reversal candle between 37100-37200 zone and long's should only be initiated once we cross the high of this reversal candle.
Personally i feel that this might be the last leg of an upmove as all the major time cycles have turned negative,hence position sizing should be done keeping once risk apetite in mind.One should not over leverage.And one should follow stop-loss both protective and trailing.
Disclaimer:This are just my views on the index.Trades should not be taken solely on its basis.posting this for my future reference.