Yesterday when i said we will have a directional trade today, i did not expect a gap up. I was hoping that BN will rally throughout the day. See yesterday's comments https://www.viswaram.com/2022/08/postmortem-on-bank-nifty-10-aug-2022.html
Today's open at 38712 and close at 38835, BN opened right at resistance line spent 3 candles and then started moving up. The move was not violent nor with such conviction, according to me it was a move due to break in resistance. And to prove not a fake, BN did not break the SR level. The move today was not entirely technical - its because of global backdrop - s&p500 had rallied 2.13%, Nasdaq 2.85% yesterday. The gap up was due to that.
5mts over the last few days shows breakaway gap. Will it sustain or not we need to monitor the upcoming sessions.
1hr chart shows clear upside momentum, BN is scaling up each SR support with ease - when it moves up so fast i am also worried that the fall will be twice as powerful. Currently BN is scaling up without spending time at each SR level - this lack of consolidation pattern may create a fall just as easy as a hot knife on a butter.
Important support & resistance points
s1: 38699, s2: 37947
r1: 39331, r2: 40138
Comments
Post a Comment