Market Trend Lab

(click on chart to enlarge) IMPORTANT POINTS FOR TRADING Banknifty broke out from flag channel with MACD positve crossing. One can see in above chart the correlation between MACD crossing and flag formation and breakouts. Blue circle on MACD and Flag pattern shows the starting of formation of flag and whereas red circle shows the consolidation within the flag channel. In above chart one can see 3 complete flag patterns and 4th pattern is forming with MACD positive crossing.  For more information on flag pattern one can read  the given link http://justbanknifty.blogspot.in/search/label/FLAG%20PATTERN On downside banknifty is having a good support around  11450-11500 zone. On upside immediate resistance will be around  12300-12350. On right side of blog, Daily and weekly Agni/JBNSAR levels are mentioned they act as important support/ resistance levels..

Banknifty has formed a Flag Pattern in its daily chart. Support comes around 9700-9800 zone and Resistance comes around 10700-800 zone. So, After consolidation banknifty may continue in its upward direction. THE FLAG PATTERN The Flag pattern usually occurs after a significant up or down market move. After a strong move, prices usually need to rest. This resting period usually occurs in the shape of a rectangle, thus the word "flag". The Flag is considered a continuation pattern because after resting, prices will usually continue in the direction they did before.