Long Term Trend Aalysis of Banknifty Index

18 sept 2024

Bank Nifty Ascending Channel Technical Analysis

An ascending channel, also known as a rising channel, is a bullish technical pattern used by traders to identify upward trends. In this pattern, price movements bounce between two parallel trendlines—one that acts as support and another as resistance—sloping upwards.

In the case of Bank Nifty, the analysis of an ascending channel involves the following steps:

1. Identifying the Trend
Bank Nifty is in an overall uptrend, with a clear formation of higher highs and higher lows.
The upward-sloping channel is confirmed by drawing two parallel lines that contain the price movement
o The lower trendline (support) connects the series of higher lows.
o The upper trendline (resistance) connects the series of higher highs.
• The more times the price touches these lines, the more valid the channel becomes.

2. Support and Resistance Levels
• The lower trendline acts as strong support, where traders typically look to enter long positions or buy on dips.
• The upper trendline serves as resistance, and traders might take profits here or enter short positions expecting a pullback.
• Bank Nifty's movement between these levels can provide opportunities for swing traders who aim to capitalize on price bounces within the channel.

Important Levels :

After Breakout + 15.25% - Retracement towards Support

Suppot to HH + 37.57 % HL - 22.8 % @ 32,290

HH +28.5 % @ 44,151 HL -12.54% @ 38,613

HH +19.93 % @ 43,369 HL -9.20% @ 42,105

HH +15.7% @ 48,636 HL -4.9% @ 46,077

HH +15.41% @ 53,180