This is weekly chart of BANKNIFTY on NSE (INDIA) with CMP @ 25,737.50. Critical analysis/observations as mentioned below suggest that we may take short term bullish view:
1. Price was following a rising channel from December 2015 till price broke down in Sep 2018 as indicated on chart.
2. During rise in price (MARCH 2018 to AUGUST 2018), it can be seen that it failed to go up and test upper end of the channel which indicated loss of momentum.
3. Strong support @ 23650 has been marked on the chart.
4. Bullish kicker has been formed in OCT 2018 and price has shown reversal from 78.6% retracement level as shown on the chart.
5. New probable channel has been drawn which price is likely to follow (Marked on chart).
6. Stochastic RSI is in oversold area and has indicated bullish crossover.
7. However, it is likely to face stiff resistance to enter the previous channel.
In view of above, immediate target can be considered at 26,600 which is middle of probable channel shown on the chart.
1. Price was following a rising channel from December 2015 till price broke down in Sep 2018 as indicated on chart.
2. During rise in price (MARCH 2018 to AUGUST 2018), it can be seen that it failed to go up and test upper end of the channel which indicated loss of momentum.
3. Strong support @ 23650 has been marked on the chart.
4. Bullish kicker has been formed in OCT 2018 and price has shown reversal from 78.6% retracement level as shown on the chart.
5. New probable channel has been drawn which price is likely to follow (Marked on chart).
6. Stochastic RSI is in oversold area and has indicated bullish crossover.
7. However, it is likely to face stiff resistance to enter the previous channel.
In view of above, immediate target can be considered at 26,600 which is middle of probable channel shown on the chart.