Perfect Breakout or Breakdown Play For Banknifty FUT at 42000
Here I See Bank nifty is Hitting Very Important Zone That is Daily Falling Trendline Resistance Area . Previously BN FUT Has Had Taken Sharp Cut At These Levels & Could Not Sustain .
Hence This is Now 4th Attempt To Make Or Break .
Possible Moves .
Breakdown Scenario . - Since Last 3 Times Whenever We Had These Levels Hit We Had Suddent Quick Breakdown Hence Possibility is High for same again. - How do we know its breakdown ? Look for Daily Doji HAC Candle Close and Its Low To Be Broken. - Look For 15 Mins Head & Shoulder or M Pattern - If either of these give breakdown then good opportunity to short
Breakout Scenario - I would consider breakout only if 2 days candles close above this trendline and are green in color - There is also a high chance of bull trap at this zone . - How to Identify Breakout ? Either 2 Daily HH Candle Closing Above Resistance TL - Flag/Ascending Tringle Breakout in 1 Hour TF - Make Sure That There is No RSI Or Macd Divergence in 15 or 30 mins TF . - If this happens good opportunity to go long