Banknifty Bullish Move Analysis

Banknifty Bullish Move Analysis - May-27, 2020

I could not upload posts yesterday on Banknifty update as unable to upload charts due to internet issues. So I am posting yesterday's charts, just to analyze today's upmove. I will just analyze how Gann Angles, RSI, and futures data helped to capture today's move.

Following observations on various charts:

Yesterday's low was an exact reversal from Weekly 45-degree (1/1), Gann Angle
On the Daily chart, RSI made Bullish "W" pattern
On the Hourly chart Bullish MA ( I use 30-EMA/40-MA) crossover after Bearish crossover on May 5

Futures Data

Huge reduction in OI (short covering of positions added on May 22)
Future to spot premium changed from -63 to +5

This information created a Bullish view on Banknifty.

The signal for Big Move Today:

Exact opening on Banknifty Gann Degree Number 17600 (opening was @ 17603). This signaled BIG Move(700-800). My target because of this opening is 18300 i.e. next Gann Number. It actually moved too far from even 18300 (not expected).

Comments

VIX Analysis

The daily VIX chart shows the formation of Doji candles at the bottom and reversal. The daily RSI crossed the previous resistance level of 40. The MACD signal gave bullish crossover suggesting bullish move in VIX. So the daily chart shows the possibility of VIX moving towards 28 levels in the coming days. The weekly chart shows the formation of wedge and reversal from the bottom. VIX may move towards the upper wedge line @ 29-30. So VIX suggesting the bearish mood of the market and hence the high possibility of fall in Nifty-50 and Banknifty in the coming days/weeks. VIX Gann Box: The daily Gann Box shows a reversal from the mid-zone of time factor points. The next time factor date is Jul-21. So will VIX continue to move high till Jul-21 or it will reverse from angle point? Wait and watch. Using VIX to spot Intraday Reversal on Indices: VIX is a very useful indicator to spot reversal during day trade. If the price of an index moves up and @ resistance zone watch values of VIX. If VIX s...

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BankNifty Update For Jul-09,2020 - Weekly Expiry

Banknifty opened Gap up @ 22700 and then achieved all our bullish targets of 23900/23000. But the upmove was very choppy and looked like terminating pattern and was not easy to trade. So I did not take a trade on the upside. My observation was Banknifty good up (250-300 points) while Nifty was not at all moving up and was just 10-15 points up and VIX was increasing. That was a signal that there is a high probability of reversal. (I twitted this around 12.30 pm). Banknifty continued its upmove and VIX was not falling, so I was sure that reversal is on the card from the strong resistance zone of 23900-23000/50. In yesterday's post, I mentioned about daily RSI @ resistance. That was another reason I was expecting a high probability of fall after it moved higher levels to come to at least yesterday's close levels or below. I got down-trade from almost 23000 to 22700 (got out earlier as it was intraday and not much time left though I was expecting at least 22600. It gave a much lowe...

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