BankNifty Update for Jun-24. 2020

Banknifty consolidated for a few hours with a bullish bias. The hourly chart shows all first 3 candles though of Doji pattern closed above 21800. Then it started moving up and last hours it gave explosive move to make a new high breaking Apr-30 high. High made today @ 22322 and closed @ 22264. So above 21800, we achieved all our intraday targets and now very near to the 3rd swing target of 22500.

Look at how MACD histogram (line plotted) took support @ the "0" level and the MACD level bounced from the MACD signal before giving big impulsive move.

The daily chart showing Banknifty above the Upper Bollinger band. The possibility of bullish move continuation very likely. The daily chart shows trendline (RED) resistance @ 22900.

Weekly chart resistance @ 22800 (We discussed this chart in Update for Jun-17 post)

Gann Box:

Gann Box showing next resistance levels @ 22550-650 (Weekly chart) and 22950-23000 (Daily chart)

Trade Plan:

We may get tomorrow our 3rd Swing target of 22500

Intraday:

Above 22300 targets are 22500/550/650/22800/22900

Below 22000 targets are 21800/21650

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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