(Banknifty weekly Chart)
In above weekly chart one can see the channel and rising wedge pattern. Banknifty has resisted near the top of channel and rising wedge pattern.
Rising wedge pattern in uptrend is bearish only when it break the wedge on downside otherwise it may continue its uptrend within the wedge
For next week channel top and wedge top are 12630 and 12720 respectively whereas on downside wedge support comes around 11900 and 78.6% retracement level of 13303 to 7766 comes around 12115.
For Long term view one can see the below link :
RISING WEDGE PATTERN
The rising wedge pattern is characterized by a chart pattern which forms when the market makes higher highs and higher lows with a contracting range.
When this pattern is found in an uptrend, it is considered a reversal pattern, as the contraction of the range indicates that the uptrend is losing strength.
When this pattern is found in a downtrend, it is considered a bearish pattern, as the market range becomes narrower into the correction, indicating that the correction is losing strength, and that the resumption of the downtrend is in the making.
Prices usually decline after breaking through the lower boundary line. As far as volumes are concerned, they keep on declining with each new price advance or wave up, indicating that the demand is weakening at the higher price level.
A bearish signal, the pattern is normally a continuation signal in a down-trend but acts as a reversal signal when encountered in an up-trend.
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