Bank Nifty - Potential Bearish Breakdown from Symmetrical Triang

17 oct

"The Bank Nifty is showing signs of a potential bearish breakdown from a symmetrical triangle pattern. After a sharp decline, the index has been consolidating in a triangle formation, which often precedes a significant move.

Key levels to watch:

Resistance: ~51,400 (upper trendline of the triangle)
Current price: 51,269.55
Support: 51,017.60
The increased volume during the consolidation suggests building pressure. A breakdown below the lower trendline of the triangle could lead to a test of the support at 51,017.60 or potentially lower.

However, traders should be cautious as symmetrical triangles can break in either direction. A upward breakout is also possible if the index moves decisively above the upper trendline.

Trading Strategy:

Bearish scenario: Enter short positions on a confirmed breakdown below the lower trendline with a stop loss above the upper trendline.
Bullish scenario: Consider long positions only if the index breaks and closes above the upper trendline with increased volume.