#banknifty analysis for 22nd to 23rd July'2021
As posted on 16th July: "Be cautious 35,800 to 36,300 range, sudden sell-off can be seen" and there was sharp selloff of 1627 points in two days and as per rising wedge targets, we have already completed the target and today we took bounce from 0.786% of the retracement.
The next support level is 34,234 (100 DMA), which should hold, and risk to reward is better on long from here.
Did we complete the Leg A of correction will only come to know on Thursday, if we get a bounce the AB can extend till 35,171 to 34,363?
The trading strategy will be to find long opportunities till the time 100 DMA holds
DP:- 34,700 (above +ve below -ve)
Decision Points :- Important reaction points, which price reacting to movements are 34,653 / 35,095 / 35,358 / 35,555 / 35,800 / 36,126 / 36,293-36,320
E.g. One of the important DP is the weekly low, if the weekly low is broken, then only you will be short else you won't.
John Maynard Keynes said, “the markets can remain irrational longer than you can remain solvent.” So be cautious and flexible as market conditions evolve.
Always trade what you see, never trade what you feel. Make this a habit, you won't be requiring any seminar, webinar, or mentor, you will be self-sufficient.
Regards,
SG
As posted on 16th July: "Be cautious 35,800 to 36,300 range, sudden sell-off can be seen" and there was sharp selloff of 1627 points in two days and as per rising wedge targets, we have already completed the target and today we took bounce from 0.786% of the retracement.
The next support level is 34,234 (100 DMA), which should hold, and risk to reward is better on long from here.
Did we complete the Leg A of correction will only come to know on Thursday, if we get a bounce the AB can extend till 35,171 to 34,363?
The trading strategy will be to find long opportunities till the time 100 DMA holds
DP:- 34,700 (above +ve below -ve)
Decision Points :- Important reaction points, which price reacting to movements are 34,653 / 35,095 / 35,358 / 35,555 / 35,800 / 36,126 / 36,293-36,320
E.g. One of the important DP is the weekly low, if the weekly low is broken, then only you will be short else you won't.
John Maynard Keynes said, “the markets can remain irrational longer than you can remain solvent.” So be cautious and flexible as market conditions evolve.
Always trade what you see, never trade what you feel. Make this a habit, you won't be requiring any seminar, webinar, or mentor, you will be self-sufficient.
Regards,
SG
