Bank Nifty - Bullish Setup

Chart 1 (Bar Chart):

·         The bullish reversal pattern called double bottom is visible on daily chart.

·         Index retested the breakout level at 25,915 last week and resuming its northwards journey.

·         The 200DMA (Daily Moving Average) is placed right at the retest level of 26,004 and also the key psychological level.

Chart 2 (P&F Chart):

·         The 1% X 3 Point & Figure (P&F) chart also called as X-O charting indicating the bullish setup on index.

·         The black trendlines – horizontal and rising on chart below are indicating the trend is bullish.

·         Double top – the bullish pattern on chart suggests the fresh momentum (marked green). It the first bullish breakout after August 2018.

·         The red arrows are signaling higher high – higher low formation which is again – the bullish sign.

·         The brown line indicates the previous low is or O is well respected the breakout post support are generally the strongest one.