A small correction in uptrend
If you have been following our updates, then we booked all but 25% of our long position in Bank Nifty on Monday 30th July. The signs were there:
- Multiple green bars on both 30 min and 1 hour time frame.
- Few big bars and then uptrend. Showing that the current run is going to face a correction soon.
- Volume was spiking, showing distribution pattern.
Today, this correction was confirmed. I am now short in BankNifty, with stop loss at recent high. Position is light as overall trend is still long.
As it is clear from the Bank Nifty Chart above, it is bound to make new highs in near future. The recent breakout from medium term resistance at 27200+ has opened doors for good up move. This won’t be easy though. There will be corrections like current one. The only way to make money is to follow the trend & maintain stop loss.
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