After facing some heat from the larger Timeframe Trendline resistance Banknifty consolidated for almost 5-6 months if we look at a larger timeframe but in AUGUST it has closed nicely above 35600 which was acting as a resistance.
BANKNIFTY MONTHLY LOG SCALE
As of now chart of Banknifty indicates good accumulation just below the trendline resistance and if it takes out this resistance we can expect Banknifty to reach our previous target which is 42000. Link- https://www.tradetales.in/banknifty-42000/
BANKNIFTY DAILY
A daily close above 36870 and we are heading towards 42222. #HarmonicBat
For queries you can mail us here at- Info@tradetales.in
Disclaimer- This post is for educational purposes only kindly consult your financial advisor before taking any decisions we’re not liable for anyone’s profit and loss. PEACE.
The Nifty is the flagship benchmark of the National Stock Exchange (NSE), which is a well-diversified index, comprising top 50 companies in terms of free-float market capitalization that are traded on the bourse. It is supposed to reflect the health of the listed universe of Indian companies, and hence the broader economy, in all market conditions. -ET
View- Bullish. Let’s look at the thorough technical analysis of Nifty 50. The current market price of nifty as on 04-07-2021 was 15722 and we are expecting it to reach a target of 30000 in 2-3 years.
NIFTY MONTHLY LOG SCALE
Nifty registered a top on 01-Apr-1992. After that, the prices moved in a channel till 01-Jul-2005 and then comes a massive bull domination phase for almost 4 years. If I consider the data from channel bottom and after that market crashed in 2008 which looks like a channel retest in long term charts and then again the price moved in an upward channel like before.
NIFTY MONTHLY LOG SCALE
In this chart we’ve tried to estimate the time for how the long price stayed inside the first channel and have compared it with the second one and it looks like both the channels took the same amount of time inside the channels. #Stunned So, this gives us a rough idea that for 2-3 years bulls are going to dominate the Nifty but smaller pullbacks and shakeouts cannot be ruled out even if Nifty rallies ferociously.
NIFTY MONTHLY LOG SCALE
After coming out from the first channel it is quite visible how nicely it went up and more than doubled in just a span of 2 and a half year’s. The same might happen in coming years if we are analyzing the price structure correctly. But for this thing to happen global cues also have to support, so let’s look at the chart of NYSE.
NYSE Log scale
NYSE is moving in a very nice upward channel without breaking the lows despite testing it many times. For this chart the analysis is quite simple: As you can see, there’s a midway between highway for bulls and lower lane for bears and whenever the price stayed above the midway, It has rushed madly in the upper lane of bulls. A breakout is yet to happen here and we’ll see it in the coming weeks that how it deals with this stiff resistance and if that happens we’ll have the support from global cues as well.
NYSE Cyclical chart
If we analyze the price structure here, you can see clearly that how beautifully these 2 patterns are constructed and price is behaving the same way like earlier. That’s the reason why Technical Analysts say “History repeats itself”.
DOW JONES INDUSTRIAL AVERAGE WEEKLY
Dow Jones also looks set in weekly timeframe to move much higher as the bigger reverse symmetry is tested and it has also given a Flag breakout. #BULLISH
Disclaimer- This blogpost is shared purely for the educational purposes and we are not liable for anybody’s profit or loss.
This study is totally done only on the basis of Technical Analysis. We know that a lot of factors like Economic conditions, Politics etc. are going to influence if Nifty has to double from here. It depends from person to person that how they want to play this Trend. If you are interested to know the different ways how this Trend can be played for much higher returns and low risk, Don’t wait just shoot up an E-mail at- info@tradetales.in PEACE.
After underperforming, Nifty for quite a while now; Banknifty has given a breakout on Friday after the monthly expiry of June series. Now in coming months what can we expect from Banknifty?
Pattern name- Crab Harmonic pattern
This is the daily chart of Banknifty where we can see that after breaking out from the B point of Crab pattern, it smoothly retested and started moving up and also slashed the Descending trendline. Further, we can expect Banknifty to reach the Target of point D of this pattern which is at 42222 and if that happens we can see Banknifty outperforming Nifty for coming months. Pattern invalidation – DAILY close below point C (32055).
June series top and bottom analysis
June series price action was very volatile in Banknifty but June series top and bottom was well estimated by us as shown in the above chart and now we’re completely bullish on Banknifty and expecting HH and HL with good momentum.
BANKBEES
Bank bees look very attractive here at this point for medium term investing for a target of 417- 420.
For queries you can mail us here at- Info@tradetales.in
Disclaimer- This post is for educational purposes only kindly consult your financial advisor before taking any decisions we’re not liable for anyone’s profit and loss. PEACE.
A Golden crossover is a Technical way of forecasting the market using moving averages. Some traders and investors often combine it with other indicators and methods so that their risk reward ratio is favorable.
Most of the techniques in technical analysis can be used from 1min time frame to a monthly time frame horizon. There are no specific tools which are only to be used in monthly or weekly timeframe’s. It’s about ‘how you want to use it according to your own trading and investing style?’ Getting straight to the point; Golden crossover happens when, short to medium term 50DMA crosses the long term 200DMA. DMA- Displayed moving average.
Almost all the charting platforms provide this tool for free and you just have to plot these averages and look for 50DMA crossing 200DMA from below. Majorly after a golden crossover in higher timeframe like weekly and monthly we can expect at least 2-3 years of bull market or more depending on other economical factors.
This is one of the best method’s to forecast the market phases and take positions accordingly. The rationale is also very simple: Let’s understand it with the help of example here- When price crosses 50DMA, It simply means that the last 50 day average price is crossed which was earlier acting as a resistance and now we can expect the next phase to be bullish or sideways with bullish bias.
In the same way when 50DMA crosses 200DMA, It means that the last 50 days average price has crossed above 200DMA and price is also above both of these averages. We take it this way that the supply of over 50 and 200 days is now being cleared and a strong rally upside is due.
In the above chart red cord is 50DMA and blue cord is 200DMA and it’s quite clear what happened after the crossover.
We’ve explained this chart completely combining the other methods of estimating the next move because that’s where money is made. Isn’t it? Link- https://www.tradetales.in/nifty-smlcap-100/
Do tell us in the comment box where you saw a golden crossover happening and how you traded it?
Disclaimer- This blog is for educational purposes only. Kindly refer to your financial advisor before taking decisions. PEACE.
