BANKNIFTY - 1 Day Time Frame Analysis📈 NSE:BANKNIFTY - 1 Day Time Frame Analysis
This chart shows a classic Inverse Head and Shoulders pattern forming on the daily timeframe of BankNifty. This is a bullish reversal pattern, generally indicating a potential shift from a downtrend to an uptrend.
Left Shoulder: Formed around April 23rd–25th, marked by a short-term low.
Head: The lowest point in the pattern, formed around May 8th.
Right Shoulder: Formed around May 28th, indicating buyers are stepping in earlier, showing strength.
The neckline resistance lies near 55,913, which the price is currently testing. A decisive breakout above this level, with good volume, could signal a further upward move towards the higher resistance zones like 56,526, 56,907, and possibly 57,292.
Key Support Zones:
55,167
54,791
54,479
Traders may look for a daily candle close above 55,913 for confirmation. Risk management is crucial as a failed breakout may lead to a retest of support levels.
TRADE PLAN:
🔹 Entry:
On a daily candle close above 55,913 (neckline resistance).
Preferably with strong volume confirmation.
🔹 Targets (Upside Levels):
Target 1: 56,526
Target 2: 56,907
Target 3: 57,292
🔹 Stop Loss:
Below 55,167 (recent support and right shoulder low)
Conservative traders can use a tighter stop below 55,400 (previous candle low).
🔹 Risk Management:
Use appropriate position sizing (risk only 1-2% of capital).
Wait for candle close above breakout level, not just intraday movement.
🔹 Invalidation:
If price fails to hold above neckline and breaks below 55,167, pattern becomes invalid.
This setup favors bulls as long as price sustains above the neckline.
Disclaimer: This analysis is for educational and informational purposes only. Please consult your financial advisor before making any trading or investment decisions.
