Dow 30 scaled up 547 points will Nifty & Banknifty follow _ ProRSI Analysis
In last nights trade Dow 30 moved up more than 500 points, lets have a look at Nifty and Banknifty charts and try to analyse whether Indian counterpart will follow the run.
The Nifty chart (above) have registered higher closes in the last 4 sessions. The buying is eminent by looking at the wide bodied candles. The RSI is trying to keep its heads up above 40 levels and ADX is losing slope. All these point at the loss of bearish momentum in the index. However the time study (not shown in the chart) points important time zones levels between 18th – 20th October 2018. If prices are able to hold themselves up above 10370 levels, 10700 – 10900 levels may be eminent. RSI and price action needs to be watched at these levels. Holding up above bull zones will play an important role. In short as long as 10370 levels are safe, any selling activities can be ruled out.
IF YOU WANT TO LEARN HOW ADX WORKS JOIN OUR ADVANCED ONGOING !FREE! YOUTUBE VIDEO SERIES HERE. SUBSCRIBE AND SHARE.
Yesterday, some PSU banks like Federal Bank, South India Bank posted a decent pullback. DCB bank also rallied more than 4%. BankNifty is testing a consolidation resistance levels, at the same time holding up support levels of 25000. As long as it stays above this, buyers can relax. 26200 – 26900 levels may be set in place. One thing to notice is RSI is hovering near the 60 levels, and have not been able to penetrate through it (even on hourly chart), more momentum is required for Bank Nifty to ride to 26200 – 26900 levels. RSI Acceleration mode is missing. Have a look at the ADX, lagging below the +DI. To see bank nifty move up to the above levels I will be look forward at the ADX to push up above the DIs and RSI penetrate above 70 levels. The time cycles will be activated from 18th – 20th October in the Index. In short as long as 25000 is in place, chances of sell off is limited.
Before jumping into the stock with your money I request you o go through the DISCLAIMER here. I may have a position in the stock.
Telegram : HTTPS://T.ME/WAVEMETRICPROMOTION