Head & Shoulder (H&S) pattern in the Bank Nifty Index on a daily timeframe. The H&S pattern is a reversal chart pattern indicating a potential bearish trend after an uptrend. Here's the detailed explanation:
1. Key Components of the Pattern:
2. Neckline:
3. Entry and Targets:
4. Stop Loss:
The Stop Loss is placed above the recent high near 51,050, to minimize risk if the price reverses upward.
Conclusion:
The Bank Nifty chart demonstrates a classic Head & Shoulder pattern, indicating potential downside targets with well-defined entry, stop loss, and profit-taking levels. This pattern suggests caution for bullish traders and an opportunity for bearish traders if confirmed.
1. Key Components of the Pattern:
- Left Shoulder: The first peak, formed after an uptrend, followed by a decline to the neckline (support).
- Head: The highest peak, formed after the left shoulder, followed by a decline back to the neckline.
- Right Shoulder: A peak lower than the head, formed after the neckline is tested again, signaling weakening upward momentum.
2. Neckline:
- The neckline acts as a support level that connects the lows between the left shoulder, head, and right shoulder.
- In this chart, the neckline is marked as a critical support level.
3. Entry and Targets:
- Entry Point: A short position is triggered once the price breaks below the neckline with strong bearish confirmation.
- Projected Targets:
- Target 1: 48,050
- Target 2: 46,550
- Final Target: 45,000
- These targets are derived by projecting the height of the head from the neckline downward.
4. Stop Loss:
The Stop Loss is placed above the recent high near 51,050, to minimize risk if the price reverses upward.
Conclusion:
The Bank Nifty chart demonstrates a classic Head & Shoulder pattern, indicating potential downside targets with well-defined entry, stop loss, and profit-taking levels. This pattern suggests caution for bullish traders and an opportunity for bearish traders if confirmed.
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Penafian
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🔗 Website: bit.ly/tradzoopage
📣 Telegram: t.me/tradzooIndex
📲 Android App: bit.ly/TradZooApp
📲 Forex App:tradzoo.com/forex/download
🍎 iOS App: bit.ly/TradZoo-iOS-App
🔗 Website: bit.ly/tradzoopage
📣 Telegram: t.me/tradzooIndex
📲 Android App: bit.ly/TradZooApp
📲 Forex App:tradzoo.com/forex/download
🍎 iOS App: bit.ly/TradZoo-iOS-App
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.