(BANKNIFTY WEEKLY CHART)
Today will discuss some interesting observation made by me in Banknifty Weekly Chart (shown above one can double click on chart to enlarge the image):
- In above chart one can see one big triangle shown with black dotted lines. Triangle patterns are also known for false break out and brake down. So in above chart first we had false break down and next day quickly banknifty recovered and came once again into the triangle. What it does this time ?? Will it be false break out?? (Shown with yellow circle both break down and break out)
- Secondly one can see the RSI which i hope gives answer to above question. Here we have shown blue arrow one is positive diversion and one is for negative diversion. In past RSI given well in advance the signal for trend reversal. So this time ?? Remember it is a weekly chart and even if it gives signal for trend reversal in near by period, one should wait for price to react.
Today Banknifty is having resistance around 12435-12510 zone. It will be weak below 13205. Having strong support around 12900-12940 zone. Right now banknifty is consolidating and it is range bound hence one should trade with support and resistance level.
The country's largest bank SBI is due to announce its Q4 result on 23rd May 2013. It is to be noted as it is having highest weightage on banknifty index.
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