Nifty and Bank Nifty both continue to trade near lifetime high levels. During such moves the best method to follow is to use trailing stop method from positional trading perspective.

Below you can see the chart of Bank Nifty along with Elliott wave pattern and a trend following method using Parabolic SAR.

Bank Nifty daily chart:

Elliott Wave analysis:

The following was published today morning in “The Financial Waves short term update

In previous trading session Bank Nifty had a minor positive opening near 27920 levels. It has managed to cross 28000 levels making a new high near 28120 levels and closed on a positive note near 28062 levels.

As shown on daily chart of Bank Nifty, we are showing parabolic stop and reversal indicator which determines the price direction and the reversal point. As of now, SAR is providing stop near 27524 levels, so from short term basis this level can be used as an important support level.

As shown on the hourly chart, (showed in morning research report)

In short, …….. Existing long positions can trail stop towards 27750 but fresh longs should be initiated with caution.

We keep juggling around different methods and indicators depending on the market trend. This is the time when one needs to keep riding the long positions with trailing stop method. Get access to “The Financial Waves short term update” and see yourself the key levels on Nifty, Bank Nifty, stocks. Also subscribe for a year and get monthly update free along with it. Subscribe NOW