BANK NIFTY FUTURE WEEKLY
In the above chart, I have drawn Andrew's Pitchfork with starting point A as Jul 2006, point B as High of 13320 and point C at low of 7750. When doing so, the median line has provided perfect resistance at the recent all time high of 13348.
While making a new high at 13348, it has also made a double top and corrected sharply to make a recent low of 8349 at 50% level. In the last three days, Bank Nifty future has gone up over 19% from the recent low of 8349. This sharp up move has given an impression that the worst is over for this sector. In the week ahead, it may find strong resistance around 10200 being the lower parallel line as well as 0.382 Fib level of 10250.
Secondly, on the attached chart I have marked the time (in weeks) it has taken for each of the major moves. You will observe that the fall has lasted for 59 weeks where as the up move has been for 88 & 73 weeks. This shows that the sharp up move may just be a correction to the sharp fall as we are just into the 15th week of the fall.
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Ketan Asher.
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