Banknifty has been forming a descending channel for more than two months. Price has fallen to 32290 and started creating pullback for sellers.
There are two possible reversal points for Bank nifty:
1) Bank nifty can reverse in the range between 34147 – 34205.
2) Lower-high can complete at 34650, which is 61.8% retracement.
These confluence zones indicate that price has an upside limit of 34650. If the price sustains below 34650, traders can short for the following targets: below.
According to the chart, the trend is bearish, but we shouldn’t take any short positions without confirmation. Buyers are limited to 34650.
If the price starts falling in the early stage, the breakdown of the H-line will initiate a short signal immediately.
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