Bank Nifty 45,000 Levels ? Trend Line Trading Concept
This is bank nifty chart on the daily time frame. Now, if you see I am analyzing the move of bank nifty from 32,400 levels to make you analyse and teach a simple aspect of the technical analysis.
In the first trend line marked with red colour for ease of understanding and learning. You will notice that from 32,500 levels the bank nifty was moving in an uptrend and this trend line was never broken to the lower side throughout till it hit resistance of all time high at 41,700 levels in September month.
Thereafter, this trend line broke at 40,500 levels and we witnessed a bearish trend and a correction of 3000 points. Bank nifty thereafter recovered from support at 37,600 levels and thus led to a bullish trend from 37,600 to hit an all-time high of 43,700 levels on the daily time frame. Now, this bullish trend led to the formation of the blue trend line or we can name it as Trend line number 2.
So now if you notice clearly, that in the previous trading session bank nifty touched an intraday low of 43,200 levels and thereafter we saw a sharp recovery in the bank nifty from the zone of trend line support area.
So what will be my trading plan for next few weeks? Now for the bullish trades once we break above 43,400 levels we will again hit all-time high in the bank nifty at 43,700 levels and thereafter the bullish trend will continue and I will follow the trade as per the trend line and till bank nifty holds this trend line I will keep and maintain a bullish scenario in the bank nifty.
So friends always remember that whenever we are trading at top trend line concept helps us to consider the support and resistance levels and we derive our levels from the trend line trading concept and trade as per that.
I will maintain a bearish view only when the bank nifty breaks this blue trend line and gives a closing on daily closing basis below this trend line. Then this bullish trend line will become invalid and we can expect a bearish trend thereafter similar to what we had seen in September last week. In this bearish trend I expect bank nifty to again retest the levels of 41,600 on the daily time frame.
So friends stay as per these levels now when we are trading at all-time highs and stay cautious as no one will like to get struck at the top of the market.
In the first trend line marked with red colour for ease of understanding and learning. You will notice that from 32,500 levels the bank nifty was moving in an uptrend and this trend line was never broken to the lower side throughout till it hit resistance of all time high at 41,700 levels in September month.
Thereafter, this trend line broke at 40,500 levels and we witnessed a bearish trend and a correction of 3000 points. Bank nifty thereafter recovered from support at 37,600 levels and thus led to a bullish trend from 37,600 to hit an all-time high of 43,700 levels on the daily time frame. Now, this bullish trend led to the formation of the blue trend line or we can name it as Trend line number 2.
So now if you notice clearly, that in the previous trading session bank nifty touched an intraday low of 43,200 levels and thereafter we saw a sharp recovery in the bank nifty from the zone of trend line support area.
So what will be my trading plan for next few weeks? Now for the bullish trades once we break above 43,400 levels we will again hit all-time high in the bank nifty at 43,700 levels and thereafter the bullish trend will continue and I will follow the trade as per the trend line and till bank nifty holds this trend line I will keep and maintain a bullish scenario in the bank nifty.
So friends always remember that whenever we are trading at top trend line concept helps us to consider the support and resistance levels and we derive our levels from the trend line trading concept and trade as per that.
I will maintain a bearish view only when the bank nifty breaks this blue trend line and gives a closing on daily closing basis below this trend line. Then this bullish trend line will become invalid and we can expect a bearish trend thereafter similar to what we had seen in September last week. In this bearish trend I expect bank nifty to again retest the levels of 41,600 on the daily time frame.
So friends stay as per these levels now when we are trading at all-time highs and stay cautious as no one will like to get struck at the top of the market.
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