#Banknifty directions and levels for June 6th.
Good morning, friends! 🌺🍬 Here are the directions for June 6th:
The global market has a moderately bullish sentiment based on the Dow Jones, while our local market also shows a moderately bullish trend. Today, the market may open with a gap-up, as indicated by GiftNifty, which shows an increase of 180 points.
Nifty and Bank Nifty both have had a solid pullback. Still, the market is moving based on events, so technical participation is less. However, let's look at the wave structure.
According to the wave structure, the market is moving in a five-three-five pattern, which means a zig-zag pattern. Currently, the first five waves are completed, and we are progressing through the three-wave pullback. Its maximum pullback level is the Fibonacci level of 78%. If the market rejects around the immediate resistance or the Fibonacci level of 78%, we can expect a trend reversal (bearish trend).
The important thing is we should take reversal confirmation by using the EMA20 or the Fibonacci level of 38% breakout in the minor swing. If these conditions are met, then we can assume the trend has turned into a correction phase. This is our wave structure. Now we can look at the basic price action structure.
Despite the market's recent drastic fall, the pullback follows the same structure. Whenever the market takes a sharp movement, it could retrace only 23 to 38%. So today, we expect that if the market rejects either one of the resistances, we can expect a 23 to 38% correction.
Note: The market does not necessarily take a correction. If it rejects sharply, then we can expect this. Otherwise, if it consolidates or breaks around the resistance, then the rally will likely continue
The global market has a moderately bullish sentiment based on the Dow Jones, while our local market also shows a moderately bullish trend. Today, the market may open with a gap-up, as indicated by GiftNifty, which shows an increase of 180 points.
Nifty and Bank Nifty both have had a solid pullback. Still, the market is moving based on events, so technical participation is less. However, let's look at the wave structure.
According to the wave structure, the market is moving in a five-three-five pattern, which means a zig-zag pattern. Currently, the first five waves are completed, and we are progressing through the three-wave pullback. Its maximum pullback level is the Fibonacci level of 78%. If the market rejects around the immediate resistance or the Fibonacci level of 78%, we can expect a trend reversal (bearish trend).
The important thing is we should take reversal confirmation by using the EMA20 or the Fibonacci level of 38% breakout in the minor swing. If these conditions are met, then we can assume the trend has turned into a correction phase. This is our wave structure. Now we can look at the basic price action structure.
Despite the market's recent drastic fall, the pullback follows the same structure. Whenever the market takes a sharp movement, it could retrace only 23 to 38%. So today, we expect that if the market rejects either one of the resistances, we can expect a 23 to 38% correction.
Note: The market does not necessarily take a correction. If it rejects sharply, then we can expect this. Otherwise, if it consolidates or breaks around the resistance, then the rally will likely continue
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