BANK NIFTY- Structure & Analysis
Atualizado
Positive Structure
We can see that market is making higher highs and higher lows since March 2020. As of now, the market has not violated a higher low on any occasion. As long as the market fulfills this criterion, the trend should stay positive or bullish.
The Up-Trend Line
Joining the lows of March2020 and June2022 we get an uptrend line, which coincided well with October2023 low bounce. Hence it is a valid trendline, further confirming that the market shall remain in an uptrend as long as the trendline is not violated on the downside.
The Rising Wedge
Drawing a parallel by cloning this uptrend line gives us an uptrend channel and the price action has been oscillating in the channel for quite some time. It should be noted that joining the highs of Oct2021, Dec2022 and July2023 is giving us a new shape, which is popularly known as Rising Wedge formation- theoretically negative for the market.
Why Rising Wedges are Negative?
The reason for the negative nature of the rising wedge lies in the fact that, every time when the market is making new highs it loses strength and reverts back giving us an arrow shaped structure. The price squeezes within the wedge and ultimately could not hold and breaks down.
Where we are at Present?
The most recent high formed in the market in Dec2023 tried to push it beyond the wedge range but could not sustain and reverted back vigorously to the uptrend line.
Key level for the Market
Even when we have this preliminary weakness in the structure, in my opinion, we should not anticipate a fall until a higher low is violated decisively. The most recent higher low is at 42105. So as long as 42105 holds market may tend to bounce on every pullback.
This is my take on Bank nifty chart.
What is your opinion? Do share in the comment💬 section.
Now smash the boost🚀 button! and follow for more ideas in future.
Thank you for your visit! 🙏
We can see that market is making higher highs and higher lows since March 2020. As of now, the market has not violated a higher low on any occasion. As long as the market fulfills this criterion, the trend should stay positive or bullish.
The Up-Trend Line
Joining the lows of March2020 and June2022 we get an uptrend line, which coincided well with October2023 low bounce. Hence it is a valid trendline, further confirming that the market shall remain in an uptrend as long as the trendline is not violated on the downside.
The Rising Wedge
Drawing a parallel by cloning this uptrend line gives us an uptrend channel and the price action has been oscillating in the channel for quite some time. It should be noted that joining the highs of Oct2021, Dec2022 and July2023 is giving us a new shape, which is popularly known as Rising Wedge formation- theoretically negative for the market.
Why Rising Wedges are Negative?
The reason for the negative nature of the rising wedge lies in the fact that, every time when the market is making new highs it loses strength and reverts back giving us an arrow shaped structure. The price squeezes within the wedge and ultimately could not hold and breaks down.
Where we are at Present?
The most recent high formed in the market in Dec2023 tried to push it beyond the wedge range but could not sustain and reverted back vigorously to the uptrend line.
Key level for the Market
Even when we have this preliminary weakness in the structure, in my opinion, we should not anticipate a fall until a higher low is violated decisively. The most recent higher low is at 42105. So as long as 42105 holds market may tend to bounce on every pullback.
This is my take on Bank nifty chart.
What is your opinion? Do share in the comment💬 section.
Now smash the boost🚀 button! and follow for more ideas in future.
Thank you for your visit! 🙏
Nota
As anticipated, it bounced from near the trendline. The higher low is protected and as long as long as 46300 is protected it may go for Gap fill or a new high. 
JJ Singh
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
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🚀Tweet at twitter.com/JaySingh_2020
Trader/Investor
Moderator, TradingView
🚀Join t.me/jjsingh_2020 ,
A Free Education channel
🚀Tweet at twitter.com/JaySingh_2020
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