Bank Nifty Channel and Trade Setup using Elliott WaveJun 02, 2021
Nifty has continued to touch lifetime high levels but Bank Nifty is still shy away from the new highs. Where is this index headed?
See below chart of Bank Nifty with crucial levels given in the morning daily research report – The Financial Waves short term update
Bank Nifty 60 mins chart: shown on 3rd June 2021 morning research report
Elliott Wave analysis: Following is mentioned in the morning research report on 3rd June 2021
Nifty has touched the new life time highs whereas Bank Nifty is still way below its life time high of 37708 levels. This suggests underperformance from Bank Nifty side but nevertheless it will be important to see if in next few sessions it starts to take a lead again.
The daily chart of Bank Nifty (shown in actual research report) shows that the overall structure remains positive and from last 2 sessions sideways action is ongoing. During this action, it has managed to sustain above the crucial 9 days EMA which indicates that strength remains on upside.
On the hourly chart, prices are moving in the form of wave c or alternative wave iii on the upside. We can see that the 20 period EMA is supporting the rally and price bounced back near from this area. On downside 34900 followed by 34400 are the crucial support levels. On upside prices can move higher towards 36000-36100 levels. In a nutshell, Bank Nifty trend remains bullish. Expect prices to move higher towards 36000-36100 level where channel resistance is placed.
Above research clearly shows how one can form a high accuracy trade setup by using Elliott Wave methods and simple technical tools. Get access to the daily equity research report and see the trading strategy on Nifty, Bank Nifty, Stocks and how to capitalize in the ongoing uptrend. Get access here
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