In yesterday's post, I mentioned that Banknifty may remain rangebound in 18000--17200. Today it opened Gap up @ 18037, immediately come down to 17600 levels, our Gann No and again gave good up-move making day high @ 18175 and then again back to 17600, broke it, made low of 17390. It eventually closed @ 17486. So it behaved exactly in the range as we expected, giving good opportunities for trading.
On the daily chart, MACD is clearly showing the breakdown. In this entire retracement upmove, MACD did not cross the "0" level and now gave bearish crossover. Similarly, RSI was rangebound in the 40-50 zone during retracement move. Now it also broke 40 levels.
Breaking 17200 levels will give us a target of 15000 levels in the coming weeks, near our next important Gann Number for Banknifty, 15100. In the Month of May, Banknifty opened near Gann Number 20400, achieved the next major Gann Number level 17600. So now the next target as per this system is 15100. So let's wait and watch.
The hourly chart is showing that today's price reversed from the Neckline zone of the H&S pattern. Also observe "Bullish Divergence" in MACD Histogram (shown in line form), which suggests possible upmove on the hourly time frame. I am expecting a rangebound move for the next 1-2 days within the channel(brown color) shown.
On the daily chart, MACD is clearly showing the breakdown. In this entire retracement upmove, MACD did not cross the "0" level and now gave bearish crossover. Similarly, RSI was rangebound in the 40-50 zone during retracement move. Now it also broke 40 levels.
Breaking 17200 levels will give us a target of 15000 levels in the coming weeks, near our next important Gann Number for Banknifty, 15100. In the Month of May, Banknifty opened near Gann Number 20400, achieved the next major Gann Number level 17600. So now the next target as per this system is 15100. So let's wait and watch.
The hourly chart is showing that today's price reversed from the Neckline zone of the H&S pattern. Also observe "Bullish Divergence" in MACD Histogram (shown in line form), which suggests possible upmove on the hourly time frame. I am expecting a rangebound move for the next 1-2 days within the channel(brown color) shown.
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