Bank nifty weekly technical analysis for next week 22 to 27 june 2015
Bank nifty spot on last trading session closed at 17880 with gain. On daily chart bank nifty now trading above 1 month average and heading towards its 3 month average to test it. On downside 17770 is 1 month average support while 18220 is 3 month average resistance as well as target for this recovery rally.
On daily chart, bank nifty macd is now above zero with bullish divergence buy signal. Rsi is given bullish breakout above 50 and CCI is near zero with strong recovery pattern.
This week bank nifty closed with gains. This was first positive weekly closing for bank nifty after last 2 weeks selloff. This week banknifty high point was 17935 and closed near it with recovery outlook for medium term. Banknifty weekly low was at 17293. Total 600 points range seen this week with some value buying from investors.
For next week, bank nifty might continue to recover towards major level of 18240. If gives daily closing above 18240 and holds it, then that will be trend change signal with higher price targets for banknifty future. On downside 17700 is immediate support and long position holder must keep stop loss below it.
If banknifty sustain breakout above 18240 then take medium term long positions for target 19200 and above. Reversal at 18240 will be best shorting opportunity for price target 17700.
Future traders keep long positions with trailing stop loss below 17700 for target 18240 and above. While option traders keep buy and accumulate view on 17500 call options with same stop loss in place.