Nifty 50 - What's Bollinger Band analysis suggesting?
Sep 4, 2024
The upside rally which Nifty began post August 15, 2024, has slowed down in the past 3 days.
On Sep 2nd and 3rd Nifty kept hovering around the VWAP on 1, 2, and 4-hour charts.
The candles are no longer moving up hugging the upper band of the Bollinger Bands. In fact, they have moved away from the upper band, while the upper band has kept going up.
When candles move away from the upper band and the band keeps going up, it is an indication that buyers have become weak.
However, we have not seen any candle close below the low of the previous candle, with good volume on 1, 2, and 4-hour charts.
So, although momentum is sluggish, a breakdown has not yet happened.
We need at least one candle closing below the low of the previous candle to indicate the beginning of a downtrend on 1 hour chart.
On the other hand, a 1-hour green candle closing above the previous all-time high, would indicate that buyers have come in again and are signalling their intention to take levels higher.
Share the name of the stock you're interested in, and we'll be more than happy to conduct a thorough analysis for you.
Disclaimer: We are not SEBI registered. The content presented here is based on personal opinions. Conduct your own research and consult with a qualified financial advisor before making any investment decisions.
The upside rally which Nifty began post August 15, 2024, has slowed down in the past 3 days.
On Sep 2nd and 3rd Nifty kept hovering around the VWAP on 1, 2, and 4-hour charts.
The candles are no longer moving up hugging the upper band of the Bollinger Bands. In fact, they have moved away from the upper band, while the upper band has kept going up.
When candles move away from the upper band and the band keeps going up, it is an indication that buyers have become weak.
However, we have not seen any candle close below the low of the previous candle, with good volume on 1, 2, and 4-hour charts.
So, although momentum is sluggish, a breakdown has not yet happened.
We need at least one candle closing below the low of the previous candle to indicate the beginning of a downtrend on 1 hour chart.
On the other hand, a 1-hour green candle closing above the previous all-time high, would indicate that buyers have come in again and are signalling their intention to take levels higher.
Share the name of the stock you're interested in, and we'll be more than happy to conduct a thorough analysis for you.
Disclaimer: We are not SEBI registered. The content presented here is based on personal opinions. Conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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