BANNIFTY - UNDERSTANDING CHARTS ( 6th & 7th October 2020)

Oct 10, 2020

Second chart from the series of taking a look at the week that was in BankNifty. This week was very bullish trend in the market.

This chart indicates the overall breakout of the BANKNIFTY from it's bearish trend.

The previous two trading sessions have been studied in the below chart.

October 6th Trading Session

• BULLISH MOMENTUM IS CONTINUED FROM THE PREVIOUS SESSION.
  
• MARKET OPEN GAP UP BUT PROFIT BOOKING SEEN IN FIRST CANDLE.
  
• SIDEWAYS MARKETS UNTIL 2PM SHOWING CONSOLIDATION
  
• 2PM BREAKOUT WHICH SETTLES ABOVE PREVIOUS DAY RESISTANCE
  

October 7th Trading Session

• SLIGHT GAP DOWN IN THE OPENING CANDLE. BTST TRADERS BOOKING PROFIT IN THE MARKET OPEN.
  
• EVENTUALLY BUYERS WIN THE TUSSLE. BUYING VOLUME IS HIGH.
  
• PRICE BREAKOUT OVER THE PREVIOUS DAY RESISTANCE.
  
• BULLISH MOMENTUM IS SUSTAINED.
  
• PREVIOUS DAY RESISTANCE TRENDLINE TAKES SUPPORT IN THE FOLLOWING TRADING SESSION
  
• ENTIRE TRADING SESSION HAS BEEN ONE BIG CONSOLIDATION AS THE PRICE IS CLOSE TO THREE MONTH RESISTANCE.
  
• NOT ENOUGH BUYING AT 2PM FOR BREAKOUT, SELLERS WON.