In a larger timeframe Banknifty is just consolidating after touching a major Trendline resistance in February 2021 (Inside Bars) or we can say that the price is not able to take down the High and Low of February month yet as it is clearly visible on the charts how it tested the lows and bulls defended that territory very nicely.
If we look at the price consolidation it is just below the resistance so either accumulation or distribution is going at this moment that’s really hard to tell at this moment but earlier when it has approached the trendline resistance Bears very nicely set the trap for bulls showing the signs of Breakout and then Dumping Heavily (Corona Crash).
We are expecting a test of highs once again in Banknifty and if there will be no follow through we’ll assume the distribution is going on in Banknifty.
This article is not a conclusion of where the trend will set in but just our assumption so kindly consult your financial advisor before making any decisions as we’ll not be liable for anybody’s profit and loss.
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PEACE.
