More fundamental reasons support these choppy price action,Year end is just couple of months away. We had no more or less activity in October.
DESCRIPTION – TECHNICAL ANALYSIS
As you can see the chart, Bank Nifty is trading around potential resistance zone, which is between 17800- 18000. It is a Key level which might provide a trading opportunity.
We can see in previous price action, that key level zone 17600 – 18000 was a former support level. Even breakout happened around this level on early September. (See the chart)
Price is now trading around 17800 which actually is inside the key level zone of 17600-18000.
Price action is indicating lowest trading activity around this zone. When you look closely around the price bars this becomes clear.
Volume trend also confirms this view of low conviction around this level.
PRICE ACTION TRADING SCENARIOS
We can expect two different trading scenarios around this zone. I would consider taking trades only if anyone of these scenarios comes into picture.
CONSIDER THE FIRST SCENARIO
LEVEL FAILURE :
Expect the Level to break and consider a clear breakout from the level.
In case oftrading opportunity we should get a pullback, after the breakout.
Buying on pullback after breakout is a profitable opportunity
CONSIDER THE SECOND SCENARIO
LEVEL HOLDING :
Resistance zone should firmly accompany the sellers. We should see strong selloff FROM THE ZONE.
Once after the confirmation of Price action we can go short on Bank nifty around 17500.
Note that selloff has to be strong and powerful in order to validate the trade
IMPORTANT KEY LEVELS TO WATCH
Watch Price action around the following key levels for further conviction.
RESISTANCE LEVELS
19500
19250
19000
18250
18000
SUPPORT LEVELS
17500
17250
17000
16750
16500
Note : I am not an analyst. I am an Individual trader who trades for a living. Articles in this blog represents my own views and not any kind of recommendations. Please consider your risk profile, before acting on these trade ideas.
2 thoughts on “BANK NIFTY – LONG TERM PRICE ACTION ANALYSIS”
!!!! I was looking for something like this ,Thank you for posting the great content……I found it quiet interesting, hopefully you will keep posting such blogs…!!!!
Thanks mate, Hope it helps