Price after taking the support moves up strongly and breaks the long time resistance with super strong momentum.
As usual price cannot hold the momentum and falls back to the breakout level which can be considered as retest.
Good news awaiting for the bank nifty traders in the coming days . . .
Follow up . . . Retest happened !!...
Price finally breaks the resistance levels and hopefully closes above for this week. But one cannot rule out the option of price retesting the breakout levels before making new high.
If conservative then wait for the price to retest and crosses the present high and enter into banking stocks, aggressive then find a place to enter at the time of retest. :)
Nifty PVT Bank spot CMP 16220.
Bearish BAT pattern formation.
PRZ in range 16600 to 16950
SLZ zone above 18050
Down side 14500 - 13500 - 12500 possible.
0.886 XA retracement completion around 16950
Equivalent AB =CD pattern completion around 16600
2% BC extension around 16640 levels..
RSI divergence :- Price making higher high, RSI making lower high, Bearish...
Both CNX FINANCIALS & NIFTY PVT BANK indexes have made Bearish Harmonic AB=CD which also happens to be v close to their weekly & monthly Ichimoku resistance. Financials could retrace till 10500 while Pvt Banks could retrace till 11500. View would negate if they move and sustain above 11500 & 13100 respectively.