Hi All,
Its just couple of trendlines drawn over the highs & lows..nothing fancy here. SBIN is ranging for past few days so we are expecting breakout(expansion) soon, so whichever the direction breakout happens enter with proper stops. Being expiry day today it may give false breakout so be stingy about your stops.The same setup is forming in SBIN hourly...
Edit : Sorry about Line spacing, Don't know why there is too much space, checking with admins.
This pattern brings up numerous questions about Nifty.
Will Nifty raise till 8279 ?
Will it break the wedge & move-up on breakout ?
Will it retest upper trendline and return to retest lower wedge trendline ?
For all these question its not right time to answer, only...
Hey Guys,
Happy Monday.. Only we traders have the guts to say Happy Monday instead of Monday Blues :P
So lets jump to our analysis and why I am planning for an counter trend trade in SBI.
This is one of my favorite setups to trade, No matter what others say or think...I am deeply in love with counter Trend bcos it makes us analyze various reasons to enter trade &...
Let's start with Britain's referendum polls. No one is sure what will be poll results, Its Neck to neck between BRemain & Brexit. What Nifty will do inline with poll results ?
If Bremain happens - Nifty Gap Up ; If Brexit - Nifty Gap Down.
Rare case : There is possibility of Nifty ignoring the result as India has some vested interest in both scenarios
Coming...
Note : Unless some macroeconomic news affects banking sector, SBI has good potential to move up in coming weeks as most of loans written off & market has adjusted to that.
But Jun 14-16 with Fed meetings markets can react , Feds always do what they think right not what needs to be done.
The zone marked above has been tested 4 times, so I am expecting it will be...
Markets always has tendency to fill gap zones.
If you draw fib extensions / retracements on previous few swings , every 1.618 extension ends up in our marked zone
1618 is more valid ratio & we can expect market to move up after reaching the zone.
ABCD pattern completion also in same zone.
This is 4h chart of SBIN so will take time to complete, just keep it...
Lets keep patterns, triangles and Wave theory aside for sometime.
Lets keep it simple for State Bank of India , as you can clearly see simple trend continuation and we are planning to buy on the pull back completion.
Some may feel that how can we be so sure ? Well, as per my rule book trend continuations with good risk :reward are valid enough.
Please check...
SBI looks to have entered into a trend reversal phase with a 5wave count which can potentially be wave 1 of a bigger wave cycle. wait for a wave 2 pullback, rs170 can be a good price to enter. holding period 1year approx.
SBIN is trading at the short term lower channel and at the old demand area. Need to observe the price action.
check the charts for trades possible from this level. Need to wait for conformation of move.
