BANKNIFTY MONTHLY LOG CHART
This chart shows the Bank Nifty Index (NSE) on a monthly logarithmic scale with a clear ascending wedge pattern. Here's a breakdown of the key elements:
1. Chart Type:
Logarithmic Chart: This scales the price axis logarithmically, meaning percentage changes are equally spaced. It's especially useful for analyzing long-term trends like this one, where price movements span multiple magnitudes.
2. Pattern:
The drawn lines highlight an ascending wedge pattern:
Support Line (Bottom): The upward-sloping line that connects the lower lows.
Resistance Line (Top): The upward-sloping line that connects the higher highs.
The wedge narrows over time, suggesting a potential for reduced momentum and a possible breakout or breakdown.
3. Current Price:
The index is trading at ₹49,350.80, reflecting a 2.97% drop as indicated at the top. It's near the upper boundary of the wedge.
4. Potential Implications:
Breakout Above Resistance: If the price breaks above the upper trendline with strong volume, it may signal a continuation of the long-term bullish trend.
Breakdown Below Support: If the price breaks below the lower trendline, it may indicate a bearish reversal or correction.
1. Chart Type:
Logarithmic Chart: This scales the price axis logarithmically, meaning percentage changes are equally spaced. It's especially useful for analyzing long-term trends like this one, where price movements span multiple magnitudes.
2. Pattern:
The drawn lines highlight an ascending wedge pattern:
Support Line (Bottom): The upward-sloping line that connects the lower lows.
Resistance Line (Top): The upward-sloping line that connects the higher highs.
The wedge narrows over time, suggesting a potential for reduced momentum and a possible breakout or breakdown.
3. Current Price:
The index is trading at ₹49,350.80, reflecting a 2.97% drop as indicated at the top. It's near the upper boundary of the wedge.
4. Potential Implications:
Breakout Above Resistance: If the price breaks above the upper trendline with strong volume, it may signal a continuation of the long-term bullish trend.
Breakdown Below Support: If the price breaks below the lower trendline, it may indicate a bearish reversal or correction.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.