Banknifty Weekly Chart Study

After a long time, I have started reading charts. Fibonacci & Trend lines helps you to understand the support & resistance levels. There has been a non stop rally in banknifty from 18000 to 25150. No negative news or results could challenge the trend. 2nd August credit policy might be able challenge this trend. We have seen a rally of more than 90% in last 15 months with just one intermediate correction. 25100 to 25400 will act as major supply areas for the Banknifty. Any closing above 25500 may open doors for further upside. Whereas correction is on the cards with negative divergences & overbought RSI in daily & weekly charts. Minimum target for this correction shuld be 23525 whereas it should slide towards 22250 to resume its uptrend. Time wise 3 months correction will be there before any further uptrend.

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