BANKNIFTY
Observations:
1) On Daily Time Frame it made bullish flag and pole pattern. Upper level to consider is 36235 level and lower level to consider 35800.
Please refer Chart below:
2) It closed below 36200. @ 36169.35
3) It closed inside the parallel channel on 15min time frame.
4) But it closed above 21MA and also took support from 21MA on 15min time frame in last candle.
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Trade Setup for Date 16-08-2021:
1) Don't Jump in to trade at the beginning of the market. Let it get settle for 15-20min first and judge the price action.
2) If it open Gap up above 36230 then let it go down to test the 36200-36180 level or the trendline, if it gets the support from these level then buy trade can be initiated once it break the 36235 level.
3) If it open Gap up above 36230 then goes down and even if it break down 36180 level and fails to get support from it then wait till it reaches to 21MA on 15min time frame. Once it get support from there then there can be two possibilities to get in to buy trade.
If you are an experience trader then 1st entry will be on the next candle or breakout of the upper trendline. And for 2nd buy and safe entry will be breakout of 36235 level.
4) If it open gap up above 36230 then goes down and takes support from 36180 or 21MA on 15min time frame then it faces resistance at 36200-36225 level then it can be sell trade entry but only experience trader are advisable to take this entry. For Safe trade better to take entry once it breaks down the 21 MA.
5) If it open gap down in range of 36130 then let it go down to take support from 21MA and if it gets the support then the buy trade entry can be possible once it breaks the upper trendline and other safe buy trade entry can be possible if it breaks the 36235 level.
But if it fails to take support from 21MA then break down of 21MA will be the sell side entry. But trade with strict SL. Don't trade with sentiment. Let price action give your direction of the trade , not your own sentiment.
6) If it open major gap down even below the bottom trendline near 35980-35990 then if it take support from 50MA and get's back in to the channel then it will be buy trade entry. But if it breaks down the 50MA then it will be sell trade entry.
7) All the levels will work as support, resistance, entry and target w.r.t price action working near that level tomorrow.
Hope I made it easy to understand it.
Do comment your doubt or suggestion.
