Skip to main content

BankNifty Monthly Analysis For Jul-2020

The observation on Monthly Banknifty chart:

  • The 3 months from the top made in Dec-2019 to the low of Mar-2020
  • 3 months from Mar-2020 ends in Jun-2020. Possible Trend change.
  • The Mar low to Jun top monthly candle pattern looks like flat A-B-C correction of the wave from the top of Dec-2019. So the further down move is expected.
  • The banknifty is now near the resistance of the monthly 70-EMA that provided strong support earlier. It may now provide strong resistance.
  • The 14-period RSI on the monthly chart is @ res level of 40(40.73).

All these points directing towards the high probability of down move towards Mar low or much lower in the coming months.
The 2-Monthly chart shows bearish MA crossover (EMA-14 and SMA-20)

The 3-Monthly chart also shows bearish crossover (9-EMA &14-SMA)
14-period RSI is @ Resistance level of 50

Gann Monthly Angle Chart:

Reversal from Gann Angle.

Gann Box:

The Monthly Gann Box suggesting trend reversal possibility as per time factor (the vertical line of 0.25-1/4th part of Box). The earlier reversal was from 1/8th of Box (0.125 vertical line) in Mar-2020.

VIX :

The monthly angle chart shows a reversal from angle and Doji candle formation which is a reversal pattern. So an increase in VIX is very likely. 

It would be interesting to see if it opens at 1/1 angle or take support @ 1/1 angle in the month of July.

The idea behind posting various charts is that all studies are aligned towards trend reversal. So we need to be cautious on the upside.

I have a strong bias for bearish move in the coming months.
Labels:

Comments

Post a Comment

Popular posts from this blog

Intraday Index Options Trading by Degree Gann Number System ! E-book available on Amazon - Download FREE!

  For the next 3-days, E-book is available FREE for download! Take advantage of this promotion. Requesting to write a review on amazon. Download link:- https:// amazon.in/dp/B09DHFS5KJ
Post a Comment
Read more

Nifty Time Cycles

The following chart shows various time cycles on Nifty. What Happened? In 2019, Gann 90 year cycle completed. This cycle comes from 1839 depression followed by 1929 depression. In Feb-2020, 20-year cycle completed from Feb 2000 Top In Jan-2020, 144-month cycle completed from Top made in Jan-2008 before the 2008 financial crisis In Dec-2019, 3-year cycle completed from Low made in Dec-2016 post Demonetisation So we saw a big fall as major cycles came together. What next for Nifty? In Oct-2020, 144-month cycle from Low made in Oct-2008 during the 2008 financial crisis, will complete In Nov-2020, 10-year cycle from Top made in Nov-2010 will complete In Dec-2020, 288-month cycle from Low made in Dec-1996 will complete In Feb-2020, 60-month cycle from Low made in Feb-2016 will complete In Feb-2020, 13-month cycle (it is observed Nifty makes Bottom from Top in 11-13 months) from Top made in Jan-2020 will complete In Sep-2021, 20-year cycle from Low made in Sep-200...
Post a Comment
Read more

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...
Post a Comment
Read more