Timeframe: Hourly
The hourly timeframe chart of Banknifty reveals a sustained downward move over the past five weeks. The price has systematically formed and shifted its value areas lower. Three distinct value areas are visible, with the third attempting a breakout but ultimately facing heavy selling pressure, resulting in an excess. On the daily timeframe, the 20/50 EMA crossover is in progress. Additionally, the Average True Range (ATR) on the daily timeframe has dropped to 699.42, while the Average Directional Index (ADX) indicates weakness at 15.24.
Based on price action analysis, the price is moving downward within a downward-sloping horizontal channel value area. The security has established a control area with more than 9 points. A total of 5 established price excesses are present. Recently, the price action has formed a value area with a double bottom and has begun to rise upward.
To anticipate a breakout, traders should watch for the price to break above the upper trendline of the channel, as there has never been a daily close above this level in previous excesses.
This also indicates that bulls have struggled to sustain the price above the upper band of the channel. If a breakout does occur, traders can set the following targets: 51,500 – 52,700 – 53,000+. However, if the breakout fails, the price is likely to return to the nearest control line, either within the channel or the value area, to gather demand pressure.
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Acceptable analysis
So far you are on the right side, Let’s see if the price will be able to break the channel or not.
Interesting. Thank you for sharing.