BankNifty is Looking to move towards 16500 now, there are three reasons mainly....
1- Banknifty is trying to Form a Channel.
2- It is trying to move in a (W) Formation Contantly with 1.41 extensions as targets.
3- It is trying to Fill every gap one by one (show with numbers on the chart)
Short Positions can be taken for the targets of 17000, 16500 with an SL...
We need to rush through this description bcos there are potential chances arising already. There are 3 components we have used to examine the dynamics of BankNifty, (i) Elliot waves - Simpler the Better (ii) Trendline (iii) Patterns
There is no need for you guys to know each n every component for analysis. Just any one of above 3 component is perfectly fine to do...
I have marked the waves in the chart and here I will explain them a little more in detail.
Wave 2 is a deep correction of wave 1 and retraces 76.4% of the wave 1.
Wave 3 is a 161.8% extension of the wave 1 and is composed of five inner waves, though I have not marked them on the chart to avoid too much confusion.
Wave 4 is a 38.2% correction of wave 2. Again...
