BankNifty: Inverted Head & Shoulders Breakout! Targeting 55,000
The 
BANKNIFTY index is showing a classic Inverted Head & Shoulders pattern on the daily chart, a bullish reversal structure indicating potential upside momentum. The neckline has been decisively broken with strong volumes, validating the breakout.
Pattern Breakdown:
Left Shoulder: Developed between 26th october to 6th Nov'24 .
Head: Marked the lowest point near 49797.
Right Shoulder: Recently formed at higher lows, confirming bullish sentiment.
Neckline: Positioned around 52550, which now acts as a support zone.
Target Calculation:
Using the pattern height (distance from the neckline to the head), the projected upside target for BankNifty is approximately 55,000.
Key Levels to Watch:
Support: The neckline at 52550 should act as immediate support.
Resistance: Minor resistance can be seen at intermediate levels such as 53460 & 54460.
Caution:
While the breakout is promising, traders should monitor global cues, interest rates, and sectoral performance, which might impact the BankNifty index. Risk management is essential.
This analysis is for educational purposes. Always consult your financial advisor before making trading decisions.
BANKNIFTY index is showing a classic Inverted Head & Shoulders pattern on the daily chart, a bullish reversal structure indicating potential upside momentum. The neckline has been decisively broken with strong volumes, validating the breakout.Pattern Breakdown:
Left Shoulder: Developed between 26th october to 6th Nov'24 .
Head: Marked the lowest point near 49797.
Right Shoulder: Recently formed at higher lows, confirming bullish sentiment.
Neckline: Positioned around 52550, which now acts as a support zone.
Target Calculation:
Using the pattern height (distance from the neckline to the head), the projected upside target for BankNifty is approximately 55,000.
Key Levels to Watch:
Support: The neckline at 52550 should act as immediate support.
Resistance: Minor resistance can be seen at intermediate levels such as 53460 & 54460.
Caution:
While the breakout is promising, traders should monitor global cues, interest rates, and sectoral performance, which might impact the BankNifty index. Risk management is essential.
This analysis is for educational purposes. Always consult your financial advisor before making trading decisions.
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