Bank nifty opened at 39324 at the support line, took support and rallied up. The rally was cut short at 10.10 and the BN came back to this support line. 12.00 BN took support and then rallied back and closed above the swing high made in the day. BN respected the support line very neatly, the inability to break support shows the strength of the bulls.
BN is now approaching all time highs, any further upmove may be fake or a pump & dump scheme. This is because the bear market rally has cut through the resistance lines without causing an impact. There is no price consolidation happening, any small reversal will trigger fresh short positions getting added.
Today's zig zag price action may be due to the expiry day trades. I got deceived thrice today, at 9.40 i expected BN not to break the swing high of yesterday, but it did. At 10.10 i did not anticipate a reversal. At 12.00 i expected BN to cut the support and navigate lower esp when the downward candles were very strong.
5mts chart for the previous days shows upward trend to continue.
1hr chart also shows upward trend continuation.
Important support & resistance levels
s1: 39327, s2: 38697
r1: 40144, r2: 41309
The resistance lines are very feeble, there has not been a strong price actions at these levels
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