Hi guys, whats' up ? Hope you're having good trading lately.
So, here I am to draw your attention towards BankNifty which is making all-time record highs.
If you study the chart, you'll find it's the 5th time we have reached this level, since when we first reached here in Jan 2015.
And this time, we got a big gap up and a red candle down.
I have drawn the white lines which are strongest support and resistance lines. and the black one is a good support line. so currently it is at a strong resistance( white line ) , keep that in mind.
Now, what to do from this ?
You can use this chart to trade according to your strategy considering the timeframe you want to trade, the risk, the position size and the kind of trader you are.
Use and keep looking at this chart for further use too.
If it stays above the rectangle box, it will indicate huge buying interest and more probability of it going up.
It if can't hold above or inside the box, then it isn't so strong, and one should wait till it re-enters the box and shows sign of strengths of a potential breakout.
If it stays below the box, it is quite weak and one should look for short trades till it reaches next support of the black line.
Do read my related idea of Weekly Education Series if you haven't already. It will help you in building a trading plan :)
Regards, Dravya
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Well above the box.
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Back inside the box. Strong if it breaks out of it again. Weak if it fails.
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Strong, very strongly gapped up, after moving out of the box. Closing this chart now, as it's going into fresh areas.