Nifty futures has given two consecutive close below the lower band and today again opened below the lower band.
The bandwidth also increased after hovering near 52 week lows for some time. The breakout from such a complacency was quite sudden.
The index gave first sign when the bounce from the mid band failed to touch the upper band signifying weakness ahead. Such a formation when the top remains inside bollinger band has been very bearish for Nifty index. On break of mid band additional confirmation came from the color system on 28th.
This shows how multiple confirmations can lead to good trade.
The index is now at the trendline support from last 3 lows made in Feb and March. As of now we are trading at the trendline. Any close below this line will be quite bearish for the index.
Related Post:Qunatifying Nifty Bollinger Bands Breakout
The bandwidth also increased after hovering near 52 week lows for some time. The breakout from such a complacency was quite sudden.
The index gave first sign when the bounce from the mid band failed to touch the upper band signifying weakness ahead. Such a formation when the top remains inside bollinger band has been very bearish for Nifty index. On break of mid band additional confirmation came from the color system on 28th.
This shows how multiple confirmations can lead to good trade.
The index is now at the trendline support from last 3 lows made in Feb and March. As of now we are trading at the trendline. Any close below this line will be quite bearish for the index.
Related Post:Qunatifying Nifty Bollinger Bands Breakout
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