Understanding market trends and identifying optimaltrading opportunities is crucial for investors and traders alike. In thisarticle, wewill delve into the recent developments in the market and explore potential strategies for maximizing profits and capitalizing on long-term growth. By analyzing key indicators and chart patterns, we can make informed decisions to navigate the market successfully.
Examining Recent Trends:
In our previous articles, we discussed the potential upward revival of trends, set to occur on May 23. This prediction was based on comprehensive analyses of time cycles, which we recommend reviewing for detailed insights. Additionally, we advised utilizing the endof-week dip asan opportunity for fresh purchases. For these new acquisitions, it is advisable to set stop levels at the swing lows of 18,085 and 43,470, ensuring a robust risk management strategy.
- Nifty Bank may move toward 44444 and 45000 levels
- Nifty Weekly Technical Forecast: Short-Lived Reaction Possible
- Aggressive Selling of Puts in Nifty and Bank Nifty
- Nifty Future Analysis: No Specific Cues Yet, Alertness Needed To Win
Bank Nifty Analysis:
A noteworthy observation in the Bank Nifty chart is the formation of two higher bottoms. If a third higher bottom manifests on intraday charts during Monday’s trading session, it could establish a favorable setup for an upward surge. To validate this potential, the Bank Nifty must achieve a close above the crucial level of 44,125, which it narrowly missed last week. Once this level is regained, it could pave the way for three- to six-day buying opportunities in Bank Nifty futures during the upcoming week.
Nifty Evaluation:
Contrary to the Bank Nifty, the Nifty does not exhibit the same trigger for a potential surge at the moment. However, a pullback until approximately 17,900 would not significantly disrupt the prevailing trend, providing swing traders with an alternative option to place their stops beneath these levels instead of utilizing the more aggressive stop mentioned earlier.
Analyzing Chart Patterns:
Let’s focus on Chart 2, displaying daily candles with modified Gann angles utilizing Jenkins methods. A crucial observation is that the recent rally high occurred on a precisely calculated slope for the angle. If the Nifty surpasses the 18,400 mark, it would indicate a fresh breakout and facilitate continued upward momentum. Notably, the support angle, as indicated on the chart, lies at a considerable distance, ensuring that the market does not face significant bearish pressure in the immediate future.
Oscillator Set-Up:
In our previous communications, we emphasized the absence of divergence, which eventually caught up with the trends at recent highs and led to a pullback. Chart 3, reflecting the 75-minute chart, vividly illustrates this development. It is worth noting that the RSI has already retraced into oversold territory due to the decline witnessed in the past week. Furthermore, a class 2 type divergence has materialized at the bottom, indicating a potential setup for a rebound.
Considering these observations, we should monitor the market closely in the upcoming week for a higher breakout accompanied by a revival in RSI readings on this chart. Such a development would validate the intention to push the market higher.
Anticipating the Future Cycle:
As mentioned in our previous discussions, the forecast regarding declines in June remains intact. Consequently, the next phase of the upward rally will likely present profit-taking opportunities, necessitating suitable adjustments in our positioning. For traders unfamiliar with trading practices, this entails tightening stops for pending longs, reducing the quantity of fresh long positions, and implementing failure standards on our charts, especially on 60- or 75-minute charts that track the market’s movements.
Conclusion:
Trading may appear deceptively simple, but it demands meticulous attention to detail and preparedness for various market scenarios. In the words of Robert Miner, “Trade the market, not your forecast!” Thankfully, our forecasts
