BANK NIFTY forming bullish engulfing.

2022년 6월 30일

Yesterday it was NR7 day for bank nifty.
today gap down opening at 33179,then immediately bank nifty jumped to day's high
at 33659,How ever this high price was rejected at once and bank nifty
could not cross that high price through out the day,
Indeed I suggested to buy 33400 put when bank nifty has reached that high point.
of course that pe jumped from sub hundred to 200 with in short period .
This one hour large candle which is known as initial balance normally occurres due to retailers and local players.
In 80 percent cases these huge candle of 1st hour is not supported subsequent buying during that day.
I was sure in the begining bank nifty will never go to the region of 33730 today and my stop loss price was that.For option
seller it was a nice opportunity to sell 33700 and above calls.
Bank nifty has a bullish engulfing structure which engulfs yesterday's tiny candle.
Yesterday bank nifty was resting on the median line of the pitchfork.
Bank nifty has not yet violated the median line of the pitch fork.
Once it violated the median line we can see further down side.
otherwise as it has bounced from median line yesterday it should touch uml if today's high is taken out.
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