Simple Trade Setup | BANKNIFTY | 20-12-2021 [ INTRADAY ]

Observations:

1) On 1day time frame, It has come below 200DMA again and now with now bottom wick. It is a stong bearish candle.
If it sustain below 200DMA then we can see more weakness in Banknifty.
200DMA is placed at 35734.42 level.

Please refer below chart : 1day Time Frame.

2) On 1hr time frame, we can see the trendline which was working as resistance and now it must work as support. But the trendline is still far away from the current level.

Please refer below chart : 1hr Time Frame.

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Trade Setup for Date: 20-12-2021

1) Don't Jump in to trade at the beginning of the market. Let it get settle for 15-20min first and judge the price action.

2) Everything is mentioned on the chart. I hope it is easy to understand.

3) All the levels will work as support, resistance, entry and exit w.r.t price action near that level.

4) Avoid gap up or gap down chase. Wait and trade between levels.

Please refer below chart for levels.

Hope I made it easy to understand it.

Do comment your doubt or suggestion.

Note: Trade with Strict SL. It may or may not hit all the levels. So one can book profit / loss at respective level considering how price action works near that level.