Break-out and retest in Banknifty

11 Jan

Bank nifty was facing rejection from 46300 level forming a resistance zone which was broken by a kind of break-away gap, not a traditional breakaway gap. The price retested the resistance zone 2 times, and it has come back to test it for 3rd time, so there is a change in polarity in bank nifty. My view is going to be bullish until the key zone that was broken out is failed. Currently Bn is trading inside a box that is consist of ATH and the important key zone. I will plan aggressive bullish trades when ATH is broken or would plan bearish trades if key zone is breached until then I would be neutral for overnight positions and as for intraday, I see a downward moving channel that could be traded actively or reactively as per trading nature.