BN opened gap up at 37717 up almost 380pts. This may be attributed to the strong global cues as S&P500 had rallied yesterday. This gap up also broke the resistance line at 37503. The BN quickly gave up gains falling to the support area at 37247 from where it bounced back. One of the reason the gap-up did not sustain would be due to the overbought level in BN and the valuations of each of the 6 major banks might be appearing froth like. However the denial of further breakdown at the support line is also indicative that its a buyers market.
If you notice BN traded between these 2 support/resistance lines for the remainder of the day. The final close was at 37486 just below the SR line.
The previous day's 5mts candle shows a strong upward trend.
On the 1hr chart, the downward trend seems broken but the upward trend is still not clear. It may not be wise to go long until unless the resistance of 38800 is not taken out.
Important support & resistance levels
s1: 37245, s2: 36565
r1: 37939, r2: 38703
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