Hello friends,
we have analyzed why bank nifty might hit a Low of 30,500 levels on charts. Yes, 30,000 levels in Bank nifty from 35,100 levels.
This is bank nifty chart on the daily time frame. Now, I will go slowly and explain why we are predicting that bank nifty might hit a low of 30,500 levels soon. If you see in the month of October, last year bank nifty hit a high of 41,500 levels.
There after we retraced and hit a low of 34,500 levels in December last year.
Bank nifty, consolidated at these levels and then made a high of 40,000 levels in February. But in this bullish move, we were unable to break the previous high of 41,500 levels. This shows a weak momentum and less commitment of the bulls to take the market higher.
Then, in the month of March this year, we hit a low of 32,200 levels. Now this March Low in bank nifty was a lower low than the previous low of December last year. This clearly explains that the bears are taking control and bullish momentum is fading away.
Again market rallied and bank nifty hit a high of 38,700 levels in April this year. But this high was also a lower high than the previous high of February this year.
Again bears took control and we hit a low of 33,000 in May.
NOW, I have drawn this bearish trend line on the chart of bank nifty for better understanding, you all will notice that we failed to break the previous high and also failed to reach the bearish trend line resistance levels on 03 June and we made a high of 36,100 levels.
So, as per the teachings of technical analysis, if we are making a lower high and a lower low pattern on the higher time frame then we are in a bearish trend.
Minor, bullish retracements are not change of trend and should not be mistaken as bullish trend.
Now coming on to the present trend, if in this retracement we break the previous low of May at 33,000 levels then we will hit 30,000 levels in bank nifty in July. So, trade accordingly please.
we have analyzed why bank nifty might hit a Low of 30,500 levels on charts. Yes, 30,000 levels in Bank nifty from 35,100 levels.
This is bank nifty chart on the daily time frame. Now, I will go slowly and explain why we are predicting that bank nifty might hit a low of 30,500 levels soon. If you see in the month of October, last year bank nifty hit a high of 41,500 levels.
There after we retraced and hit a low of 34,500 levels in December last year.
Bank nifty, consolidated at these levels and then made a high of 40,000 levels in February. But in this bullish move, we were unable to break the previous high of 41,500 levels. This shows a weak momentum and less commitment of the bulls to take the market higher.
Then, in the month of March this year, we hit a low of 32,200 levels. Now this March Low in bank nifty was a lower low than the previous low of December last year. This clearly explains that the bears are taking control and bullish momentum is fading away.
Again market rallied and bank nifty hit a high of 38,700 levels in April this year. But this high was also a lower high than the previous high of February this year.
Again bears took control and we hit a low of 33,000 in May.
NOW, I have drawn this bearish trend line on the chart of bank nifty for better understanding, you all will notice that we failed to break the previous high and also failed to reach the bearish trend line resistance levels on 03 June and we made a high of 36,100 levels.
So, as per the teachings of technical analysis, if we are making a lower high and a lower low pattern on the higher time frame then we are in a bearish trend.
Minor, bullish retracements are not change of trend and should not be mistaken as bullish trend.
Now coming on to the present trend, if in this retracement we break the previous low of May at 33,000 levels then we will hit 30,000 levels in bank nifty in July. So, trade accordingly please.