(BANKNIFTY WEEKLY CHART)
Banknifty after a breakout from a triangle pattern (Shown with blue line) and Positive crossover by MACD going strong and heading to make new high.
It seems that it is making 'Bearish Gartley Pattern' of which 'XA', 'AB' & 'BC' done and now it is in process to make 'CD' which take it to 12800-13200.
On downside banknifty is having support near 11800-12000 and on upside resistance near 12500.
It seems that it is making 'Bearish Gartley Pattern' of which 'XA', 'AB' & 'BC' done and now it is in process to make 'CD' which take it to 12800-13200.
On downside banknifty is having support near 11800-12000 and on upside resistance near 12500.
Definition of 'Gartley Pattern':
The above Gartley example shows an uptrend XA with a price reversal at A. Using Fibonacci ratios, the retracement AB should be 61.8% of the price range A minus X, as shown by line XB. At B, the price reverses again. Ideally, retracement BC should be between 61.8% and 78.6% of the AB price range, not the length of the lines, and is shown along the line AC. At C, the price again reverses with retracement CD between 127% and 161.8% of the range BC and is shown along the line BD. Price D is the point to buy/sell (bullish/bearish Gartley pattern) as the price is about to increase/decrease.
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