#banknifty analysis for 30th Mar:-
We can say that short term and the medium-term trend is down because the index is trading below its 20 & 50 EMA lines (34,492 / 34020), however, the longer-term trend is still up as we are above rising 100 & 200 SMA (32,135 / 37,270) and there is no negative crossover.
As per Dow Theory, we are making constant lower low & lower high, I will turn myself as a speculator, if I say, there is a reversal on the chart (many TA are claiming the reversal looking at SGX for the last 2 sessions).
To be honest, I don't see anything for reversal, we are in a downtrend and until the falling channel breaks upward and holds, the trend doesn't change.
34,360 -34,644 is the amount of Everest to cross, only if closing above this zone, we might break this trend, and then you can go for positional longs.
Decision Zone:- 33,698
Resistance Zone:- 33,901 / 34,360 / 34,650 / 35,100
Support:- 33,361 /33,175 / 33,050 / 32,831
One of the best forms of PA action is not to predict but to act on the price, chart tells you where, when & how to act on price. Wait for the decision points on the chart to act else don't trade.
E.g. One of the important DP is the weekly low, if the weekly low is broken, then only you will 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
We can say that short term and the medium-term trend is down because the index is trading below its 20 & 50 EMA lines (34,492 / 34020), however, the longer-term trend is still up as we are above rising 100 & 200 SMA (32,135 / 37,270) and there is no negative crossover.
As per Dow Theory, we are making constant lower low & lower high, I will turn myself as a speculator, if I say, there is a reversal on the chart (many TA are claiming the reversal looking at SGX for the last 2 sessions).
To be honest, I don't see anything for reversal, we are in a downtrend and until the falling channel breaks upward and holds, the trend doesn't change.
34,360 -34,644 is the amount of Everest to cross, only if closing above this zone, we might break this trend, and then you can go for positional longs.
Decision Zone:- 33,698
Resistance Zone:- 33,901 / 34,360 / 34,650 / 35,100
Support:- 33,361 /33,175 / 33,050 / 32,831
One of the best forms of PA action is not to predict but to act on the price, chart tells you where, when & how to act on price. Wait for the decision points on the chart to act else don't trade.
E.g. One of the important DP is the weekly low, if the weekly low is broken, then only you will 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
