0The observation on Monthly Banknifty chart:
- The three months from the top made in Dec-2019 to the low of Mar-2020
- Three months from Mar-2020 ends in Jun-2020. Possible Trend change.
- The Mar low to Jun top monthly candle pattern looks like flat A-B-C correction of the wave from the top of Dec-2019. So the further down move is expected.
- The bank nifty is now near the resistance of the monthly 70-EMA that provided strong support earlier. It may currently offer stiff resistance.
- The 14-period RSI on the monthly chart is @ res level of 40(40.73).
All these points are directing towards the high probability of down move towards Mar low or much lower in the coming months.
The 2-Monthly chart shows bearish MA crossover (EMA-14 and SMA-20)
The 3-Monthly chart also shows bearish crossover (9-EMA &14-SMA)
14-period RSI is @ Resistance level of 50
Gann Monthly Angle Chart:
Reversal from Gann Angle.
Gann Box:
The Monthly Gann Box is suggesting trend reversal possibility as per time factor (the vertical line of 0.25-1/4th part of Box). The earlier reversal was from 1/8th of Box (0.125 vertical lines) in Mar-2020.
VIX :
The monthly angle chart shows a reversal from angle and Doji candle formation, which is a reversal pattern. So an increase in VIX is very likely.
It would be interesting to see if it opens at 1/1 angle or take support @ 1/1 angle in July.
The idea behind posting various charts is that all studies are aligned towards a trend reversal. So we need to be cautious on the upside.
I have a strong bias for bearish move in the coming months.
