Bank Nifty Ichimoku Cloud, Elliott Wave Pattern

Bank Nifty has continued to be a major laggard in the ongoing market rally. This index formed a top in February 2021 and is still far away from that.

Ichimoku Cloud and Elliott Wave is a simple and powerful way of forecasting and trading the markets.

Following research is published in the morning research report “The Financial Waves Short term update”

Bank Nifty daily chart:

Ichimoku Cloud is a simple indicator that helps to understand the key support, resistance level and the overall trend for the stock or index. We can clearly see that the index has been failing to show any upside momentum even when Nifty is trading near lifetime high levels. This underperformance from Bank Nifty is concerning but we have to wait and watch if it can start to catch up on the upside or start giving away by breaking below the lower end of the cloud support.

Elliott Wave pattern: As per the Elliott wave pattern prices are moving in the form of wave (c) and the entire rise is non – impulsive. There is possibility that the entire move is in form of Big triangle. Support is near 34000 and the upper end of resistance at 36000 mark.

So, by combining these two techniques how can we trade?

As we can see prices are near the cloud support and move back above 35000 will indicate short term upside pullback towards the previous high whereas a break below the support will indicate a no trading zone as prices will be stuck within the cloud with support near 33900 levels. So conviction to take trades increases sharply by combining both Elliott wave and Ichimoku Cloud.

Subscribe to the Daily equity research report – The Financial Waves Short Term Update and get insight into Nifty, Bank Nifty, Stocks that are providing good opportunity and much more. Get access now to be on the right side of the trend over here

Want to Trade with High Conviction, No Anxiety, Riding the Trend, Stock identification and a Clear Plan & Trade Strategy? Become Market Wizard – BMW Season 2.2 starting this Saturday on 7th August – 8th August will ensure you are equipped with tools to make it BIG by trading with complete strategy. Learn from Author, CMT, Mentor Ashish Kyal and you will be thrilled to see how amazing one can predict the markets by combining simple and powerful tools, It does not matter if you are just starting or already an expert trader, timing the market using Time Cycles, Elliott Wave and Patterns is must tool for everyone, Limited Seats only, Registrations closing soon, know more here