Nifty Bank Index
Panjang

Banknifty : Rising wedge break out with liquidity trap

102
• BN was trading in a rising wedge from 7th May.
• An event of liquidity trap for the sellers occurs on 9th of May when market traded below the wedge.
• A Marubozu candle on 12th May opening indicate the big boys wants to move the BN upward and grab all the seller's liquidity.
• A higher high pattern is clearly visible on the rising wedge with resistance and support trendline.
• A consolidation of approximately one month indicates accumulation phase.
• 06th of June opening candle broke the wedge.
• A retest happens in next 2 days.
• On 11th June a retest entry trigger on top of the wedge in opening hours.
• A trade with 1:5 RR with a target of long run channel mid point.
• Preferable a bull call spread due to recent volatility crash and high risk to reward.
• Game is on. Just for educational purpose post.

Penafian

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