Bank nifty has formed a spinning top formation

2022년 7월 9일

Hello Friends!

Market has made a good recovery from the lows and the last one week have been for the bulls.
This is the bank nifty chart on the daily time frame. Bank nifty has formed a spinning top formation after the good bullish momentum. Now what is spinning top candle stick pattern?
This candlestick pattern represents indecision about the future direction of the asset. It means that neither buyers nor sellers could gain the upper hand.
THIS candlestick pattern forms when the buyers push the price up during a given time period, and the sellers push the price down during the same time period, but ultimately the final price ended up very close to the open.
SO, friends after a strong price advance or decline, spinning tops can signal a potential price reversal if the candle that follows confirms.
Now, what will be the trade plan for Monday? Friends, if we break 35,000 levels which is now a key support levels then we might break down to 34,644 and 34,400 levels. This is as per the bearish view.
Since there is indecision in the market I will prepare to have trade plan as per levels for bullish trade also. We might open flat on Monday and bank nifty if holds 35,200 levels after opening then I will take a long trade entry for 35,800 to 36,000 levels.

So, friends Monday will be very crucial for the bulls to defend 35,000 levels for any uptrend to 36,000 levels. If we break 35,000 then again we will be in the grip and this will be another of lower high being created by bank nifty on the daily time frame.