Bank Nifty on the verge of trendline breakout; know the key breakout level!
A move above 34,355 is positive, and it can test 34,565. However, a move below 34,200 is negative, and it can test 33,980.
On Wednesday, Bank Nifty jumped 1.5 per cent and closed decisively above the important psychological mark of 34,000. With this, it has managed to close above the prior swing high and also, above the previous day’s high.
Having said that, Bank Nifty has settled exactly at the sloping trend line resistance. The RSI moved above the zone of 55 and entered the bullish zone. On a shorter period chart, Bank Nifty has broken out of an ascending triangle, which is bullish. Hence, avoid short positions, as there is no sign of negative divergences as it is also forming higher low candles. A close above Wednesday’s high is positive as it would result in a trendline breakout and may probably, continue the upside move.
A move above 34,355 is positive, and it can test 34,565. However, a move below 34,200 is negative, and it can test 33,980.