Bank nifty gave strong up-move in the last 2 trading sessions and made new high crossing high made on Mar 27,2020. SGX nifty is showing clear sign of Big Gap down on Monday May 4.
From low of Mar 24 prices are moving in upside correction in the form of ABC pattern. Wave A is completed on Apr 27 @ 21462 and wave "B" on downside is completed on Apr 3 @ 17143. Right now prices are moving in wave "C" which is forming the "Ending Diagonal" pattern.
I am showing 2 scenarios in that case. Here is an hourly chart of bank nifty.
Scenario 1:
Banknifty continuously fall and breaks 18700 in the coming days then it will confirm start of the down move and we can have targets of 17200 followed by 16200. I am considering this as Low probable scenario.
Scenario 2:
Banknifty holds 19500 levels and moves up as shown by blue lines. I see this as a highly probable case where coming days fall will complete the "d" wave of bigger wave "C" and again up-move will start to complete wave "e" to complete the Ending Diagonal pattern. Wave "e' may or may not go above wave "c"
Gann Time Cycles:
Mar 21-22 (Equinox/Solstice) is one of the Gann Major time cycle dates of the year and May 8 is Minor cycle date. Banknifty (Nifty too) reversed from low on Mar 24. So I will not surprised if Banknifty consolidates still May 8 before making a big move around May 8.
Let's wait and watch!
From low of Mar 24 prices are moving in upside correction in the form of ABC pattern. Wave A is completed on Apr 27 @ 21462 and wave "B" on downside is completed on Apr 3 @ 17143. Right now prices are moving in wave "C" which is forming the "Ending Diagonal" pattern.
I am showing 2 scenarios in that case. Here is an hourly chart of bank nifty.
Scenario 1:
Banknifty continuously fall and breaks 18700 in the coming days then it will confirm start of the down move and we can have targets of 17200 followed by 16200. I am considering this as Low probable scenario.
Scenario 2:
Banknifty holds 19500 levels and moves up as shown by blue lines. I see this as a highly probable case where coming days fall will complete the "d" wave of bigger wave "C" and again up-move will start to complete wave "e" to complete the Ending Diagonal pattern. Wave "e' may or may not go above wave "c"
Gann Time Cycles:
Mar 21-22 (Equinox/Solstice) is one of the Gann Major time cycle dates of the year and May 8 is Minor cycle date. Banknifty (Nifty too) reversed from low on Mar 24. So I will not surprised if Banknifty consolidates still May 8 before making a big move around May 8.
Let's wait and watch!
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