Gold Price Forecast for Next Week
Bank Nifty forms a doji and inside bar on daily chart!
Last Updated: 14th December 2022 - 03:12 pm
On Friday, the Bank Nifty ended with modest gains of 0.30%. Interestingly, the opening of the day was near to the closing level of the day as a result it has formed doji candle on the daily chart. Moreover, as the price traded within the high and low of prior trading session it resulted information of an inside bar. So, on Friday Bank Nifty formed doji+inside bar pattern near to the swing high. It has not given any kind of weaker signal, but indecisiveness at a swing high certainly is a warning sign. The index is just 1% away from its prior swing high, but the RSI and MACD lines are declining. For the last three days, its efforts to move above the prior swing high have been in vain. A close above the level of 39700-760 will be a positive sign for the index. As there is a formation of inside bar and doji it is necessary to cross its high or low for a directional move. Doji and the inside bar's rule for trade are almost similar. A close on either side would result into a trending move. On an hourly chart, the index is still above the moving average ribbon.
The ribbon lines are in an uptrend. MACD and Signal lines are moving parallel and are not showing any kind of momentum. The pattern is like a pennant. It needs to break out on either side. On the downside, the level of 39163 is crucial support. A gap down below this level will be negative for the index. Wait for the first 15 minutes bar to close above or below of doji+inside bar for a decisive trade.
Strategy for the day
Bank Nifty has formed an indecisive bar. A move above the level 39596 is positive, and it can test the level of 39759. Maintain a stop loss at 39450. Above 39759, continue with a trailing stop loss. But a move below the level of 39360 is negative, and it can test the level of 39151. Maintain a stop loss at 39465. Below 39151, continue with a trailing stop loss.
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