Harmonicsignals
BANKNIFTYHello and welcome to this analysis
Bank Nifty after a stupendous run has reversed from a Bearish Harmonic Alt Shark suggesting a probable 38-50 Fibonacci retracement of the entire run since mid June.
Harmonic patterns are formed when structures synergize with Fibonacci ratios thereby giving higher probabilities of reversal confirmations.
This view will be valid till SPOT does not break above 39850
Risk Reward appears to be very good for a bearish trade.
Possible Double Bottom, 22k StillPossible Double Bottom with good Buying.
Double Bottom pattern target is 1x above the neckline - this would be around 21,950-22k. The 0.886 fib X-D also meets here, which would create a potential bearish harmonic .
If this does happen, my profit target will be the 1.618 and 3.14 fibs - around 20k and 18.3k.
There is a descending triangle , but I won't be shorting here - I have a feeling it will break upwards.
22k then Dumpif XA=BC (AB=CD rule), then if we follow the same pattern as we are on this bullish reversal (0.446, 2.14) on short time frame, we could see 22k before a dump to around 18.3k.
The fibs lineup well to create a bear harmonic, and the potential Take Profit 1 would be 20k, with a final target of 18.3k.
Currently, there was a 0.382 retracement and the bulls bought. This is temporarily bullish.