$BANKNIFTY has given a positive close today above the long time resistance zone.
Apart from this a Bullish RSI Divergence is seen on the charts on Daily TF.
Along with the above, buyers fight back today was more prominent in Bank Nifty than in Nifty with BN giving positive upside signs clearly as soon as it broke from the first 1 hour zone. Comparatively, $NIFTY was sluggish and lagging.
The above points makes me confident that $BANKNIFTY would very soon touch the 40800 level.
Just a caveat, like any upmove, we should expect retests. My expectation is if $BANKNIFTY opens gap up tomorrow, which i think is highly likely, it would be around 40200 level. If it gaps up, then we can see a retest of this resistance level, which now is the support.
If this level/zone is respected, then a its likelihood of hitting 40800 is strengthened.
Apart from this a Bullish RSI Divergence is seen on the charts on Daily TF.
Along with the above, buyers fight back today was more prominent in Bank Nifty than in Nifty with BN giving positive upside signs clearly as soon as it broke from the first 1 hour zone. Comparatively, $NIFTY was sluggish and lagging.
The above points makes me confident that $BANKNIFTY would very soon touch the 40800 level.
Just a caveat, like any upmove, we should expect retests. My expectation is if $BANKNIFTY opens gap up tomorrow, which i think is highly likely, it would be around 40200 level. If it gaps up, then we can see a retest of this resistance level, which now is the support.
If this level/zone is respected, then a its likelihood of hitting 40800 is strengthened.
Good Things:
- $BANKNIFTY gapped up like predicted
- It retested and respected the support zone which it broke yesterday.
Bad Thing:
- I made an error in writing the previous post, in place of 40000 i wrote 40200. Anyways, Not a big deal. 40000 is a strong resistance being a round number.
Will analyze and update my thoughts for tomorrow little latter in the day.