The highs made in Feb 2021 and Jun 2021 were broken. They formed a strong supply zone, which was broken and has been tested successfully with today's bounce.
Tomorrow being an expiry day, we couldn't see much action or may see consolidation but a rally could be expected in the second half-session tomorrow and may continue on Friday too.
We shall try to analyze...
it has given inverted H&S breakout on weekly chart.
all set for 60% upside based on H&S breakout.
near hurdle can be seen at 2900 levels.
if index has upside potential of 60%. underlying stocks can give multibagger returns.
Every expert trader was once a newbie trader. Every Pro trader was once losing money consistently. And everybody starts trading with zero experience. Why very few only become a successful trader? How a person approach trading decides it. If you want to swim, you know very well theory knowledge wont help, only experience helps you to swim.
Someone will instruct...
PSU banks have been underperformers, however I can see a turnaround in this sector. A very beautiful VCP pattern is in formation and with a breakout of the horizontal line we may see some good rally in PSU banking stocks.
Now, what to do after knowing this? How to look for stocks in this sector which may give good returns?
Price forming a pattern near the resistance and it will break in the coming days, as the analysis is on weekly time frame it takes months to break. One should look for breakout patterns in PSU banking stocks.
In bigger timeframe it is in downtrend for years.
Now showing good up move in daily timeframe and has multiple
reasons to continue bullish momentum.
But not sure till where it will last.
Resistance zone is near too.
This post is for information purpose only.
If you are bearish on BANK NIFTY tomorrow and plan to short, why not look at precarious PSU Banks for a bigger success? They are all placed precarious and market has been punishing weakness in all stocks with no mercy from several days. Why not hit it where it hurts the most. Trade subject to confirmations. Goodluck.