BANK NIFTY No need to say, that for more than six months, Bank Nifty has been trading in different channels, either upward or downward.
1. From 3rd July to 8th September BN was in a downward channel. (Channel 1). On 11th September this channel has been broken out clearly. And index moved upward till it reaches near the higher level of 21st july. From that level BN started to fall.
2. From 8th September to 3rd November BN stayed in a downward channel. (Channel 2) On 6th November this channel has been broken out.
3. From 23rd October to 1st December BN was in an upward channel. (Channel 3). On 4th October this has been broken out with a gap up opening. On the same day BN formed a big candle.
4. From 4th December to 16th January BN was in an upward channel. On 17th January BN fell from this channel, with a huge gap down opening.
5. On 17th BN entered into the previous channel again (Channel 3). But nowadays BN is not respecting the boundaries of this channel. And mostly BN stayed below the lower boundary of this channel.
7. From 14th December onwards BN is travelling in a downward channel. (Channel 5)
8. On 2nd February index has been rejected from the upper level of this channel (Channel 5). and formed a bearish engulfing candle. Please note, on weekly channel a bullish harami candle was formed.
Declaimer: I am not a SEBI registered analyst. And this is not a trade recommendation.
