IMPORTANT POINTS FOR TRADING
- Banknifty failed to cross the hurdle of 12240 and also failed to sustain above 12035 and given up all the gains.
- Banknifty is weak as it broken the weekly JBNSAR LEVEL of 12035 and till now made a low of 11754 and further weakness will continue once it breaks down the weekly Agni level of 11715 also.
- Below 11665-11715 zone it can fall upto 11400 level.
- One also keep in mind that in daily chart Banknifty has made one big 'Inverted Cup and Handle Pattern' (shown in pink dotted lines) which is a 'bearish pattern' if it breaks the line joining the left and right rim of cup. It is interesting to watch whether it breaks the joining lines of rim or not. More write up on this pattern is given below separately.
- On right side of blog, Daily and weekly Agni/JBNSAR levels are mentioned they act as important support/ resistance levels..
INVERTED CUP WITH HANDLE PATTERN
- Price makes a gentle rounding turn, forming the inverted cup. Following the cup is the handle created by Price jumps upward before starting a new trend downward.
- The two cup rims should bottom near the same price.
- Handle must not rise above the cup top but should retrace 35% to 60% of the prior down move
- The pattern confirms as a valid one when price closes below the right cup lip.
- Once the bottom rim is broken it may fall upto 40% to 45% of handle hight from right rim.
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