Bank Nifty 1H Chart analysis for(9 sept 2024)Technical Analysis:
Fibonacci Retracement Levels:
The price is respecting the Fibonacci levels of 0.618 (49,401.95) and 0.5 (49,919.95) as key support zones.The 0.786 level at 48,867 is also a major support area to watch.
Chart Pattern:A clear descending triangle pattern is forming, signaling potential weakness.If the support at 49,400 breaks, we may see further downside toward the 0.786 Fibonacci level at 48,867.
Volume Analysis:Volume is slightly declining, which indicates a lack of aggressive buying.
Support and Resistance:Immediate resistance around 51,738, which is the recent high.
Support levels to watch: 50,000 (psychological level) and the 48,867 Fibonacci level.
Trading Plan:
Entry: If Bank Nifty closes below 50,000, short positions can be considered.
Target: First target at 49,400 and second target at 48,867.
Stop Loss: Place a stop loss above the recent swing high of 51,000.
Risk Management: Ensure a risk-reward ratio of at least 1:2 to maintain proper risk management.
