Fresh BANKNIFTY strategy for next week (as per my reading based on EW method):
Ok folks, hope you had a good weekend. The below levels and strategies might look odd and difficult to implement, but this is what EW is indicating me. Here it is:
1. Banknifty should ideally attempt to touch 26900 to 27000 levels once. But I am not sure if it will go there directly or in Zig Zag pattern.
2. Therefore, after subtracting almost 50% gains from Banknifty levels made on Friday. We should ONLY & ONLY BUY BN AROUND 26600 to 26630 levels for the target of 26900 to 27000 with a VERY VERY STRICT STOPLOSS of 26590. Buy only if you find strength in market. Take cues from global indices regarding signal.
3. Please note that 27000 to 27050 is a VERY VERY BIG WALL (resistance) for Banknifty. It has retraced from the same levels several times in the past couple of months or so.
4. I am not sure of shorting above 27100 levels but I may just go for shorting (provided Global cues give a negative signal too) somewhere around 27150 to 27200 with a VERY VERY STRICT STOPLOSS of 27300 to 27350 (only if I find exhaustion & weakness in BN). Above 27350 to 27400, BN may try to touch & surpass 27652 to give us a new All Time High.
5. Now this one is VERY IMPORTANT. Below 26600 level approx, there can be BIG DANGER. And if 26500 is also gone, then probably BN will try to reach low of last Friday i.e. 26364 approx and low of last Tuesday i.e. 26224 in the next week.
6. Hence, only if I find weakness & exhaustion in Banknifty below 26600 (provided Global indices give a negative signal too) , then I may just short BN with a VERY VERY STRICT STOPLOSS of 26750 (almost closing point of Friday). Target would be 26364 & 26224.
7. Guys, always use Stop Loss & Trailing Stop Loss even if your trade is in profit. And yes, we are into expiry week. Hence, it is going to be VERY VERY VOLATILE. We were at same level during last expiry also i.e. 26950 approx on 31st May. Hence, we may witness either a swift movement either side or a big gyration blowing away stoploss of both Bulls & Bears. If possible, always try to hedge.
8. The biggest mistake most of traders make is that they ENTER exactly in between STOPLOSS & ULTIMATE TARGET. Hence, the risk reward is really poor and they mostly exit in LOSS. Same goes for those people who enter exactly in the middle point of Support & Resistance.
All the best guys. GOOD LUCK to all. May God give you profits. Make good money.
Ok folks, hope you had a good weekend. The below levels and strategies might look odd and difficult to implement, but this is what EW is indicating me. Here it is:
1. Banknifty should ideally attempt to touch 26900 to 27000 levels once. But I am not sure if it will go there directly or in Zig Zag pattern.
2. Therefore, after subtracting almost 50% gains from Banknifty levels made on Friday. We should ONLY & ONLY BUY BN AROUND 26600 to 26630 levels for the target of 26900 to 27000 with a VERY VERY STRICT STOPLOSS of 26590. Buy only if you find strength in market. Take cues from global indices regarding signal.
3. Please note that 27000 to 27050 is a VERY VERY BIG WALL (resistance) for Banknifty. It has retraced from the same levels several times in the past couple of months or so.
4. I am not sure of shorting above 27100 levels but I may just go for shorting (provided Global cues give a negative signal too) somewhere around 27150 to 27200 with a VERY VERY STRICT STOPLOSS of 27300 to 27350 (only if I find exhaustion & weakness in BN). Above 27350 to 27400, BN may try to touch & surpass 27652 to give us a new All Time High.
5. Now this one is VERY IMPORTANT. Below 26600 level approx, there can be BIG DANGER. And if 26500 is also gone, then probably BN will try to reach low of last Friday i.e. 26364 approx and low of last Tuesday i.e. 26224 in the next week.
6. Hence, only if I find weakness & exhaustion in Banknifty below 26600 (provided Global indices give a negative signal too) , then I may just short BN with a VERY VERY STRICT STOPLOSS of 26750 (almost closing point of Friday). Target would be 26364 & 26224.
7. Guys, always use Stop Loss & Trailing Stop Loss even if your trade is in profit. And yes, we are into expiry week. Hence, it is going to be VERY VERY VOLATILE. We were at same level during last expiry also i.e. 26950 approx on 31st May. Hence, we may witness either a swift movement either side or a big gyration blowing away stoploss of both Bulls & Bears. If possible, always try to hedge.
8. The biggest mistake most of traders make is that they ENTER exactly in between STOPLOSS & ULTIMATE TARGET. Hence, the risk reward is really poor and they mostly exit in LOSS. Same goes for those people who enter exactly in the middle point of Support & Resistance.
All the best guys. GOOD LUCK to all. May God give you profits. Make good money.
No weakness there, just cautious jerky upmove.
