Half Hourly Chart
Bank Nifty made a sideways move within an extremely narrow range of 114 points forming an "Inside Day" pattern.
An Inside Day is a day that has a lower high and higher low than that of the prior day.Simply put, the high and the low of the previous day are not violated. Inference of this is, the market may be catching its breath before another up or down day. It could be indecision between bulls and bears . Or, it may be hesitation by the market players who are wary whether the current trend will continue.
The pattern can become quite powerful when it occurs after a long-lasting trend or at significant resistance and can therefore signal a reversal.This is true in case of the Bank Nifty. Confirmation would be when the low of the pattern which is 12238 is broken decisively and the close is below it.
Negative divergence on the Rsi14 & Macd and the stochastics having given a sell and moved below the 80 levels supports a fall.
The effect of the morning star saw a gap up open which rightly resisted at the support line of the uptrending channel shown yesterday.I have redrawn the lines to show an expanding triangle which is a bearish formation.Break from the support line will see a fall upto 11965.
A red falling wedge is seen forming which is a bullish pattern. Breakout from this pattern could see the Bank Nifty resuming it's uptrend.Else expect some pullback.
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