As it is the Close of the month, it is time to look at the monthly chart. I had earlier indicated the breakdown and continuation of BANKNIFTY and those who followed it made good profit.
Now it is time to look at the Monthly chart. We can see an unconfirmed Double top marked T1 and T2. As per pattern theory, once the Double Top is confirmed, it will be making a "Big M" pattern.
The confirmation point is, when it has a close below 8000, which is the prior Swing Low (SWL). If that happens, the Big M target will be 3314.
I am not mentioning that it will happen. But, at the moment, it looks to be so. The time frame is one year. It may not happen in one go, but, slowly swinging down.
The angle of movement indicate the how strong the rally or a fall will be. If you look at the T1-Swl angle and SWL-T2, it is approximately, 50 Degrees. But From T2 to 31 Jul , it is a near vertical movement, which indicates that there is a long way to go down.
Let us hope that it will not happen. That is the only thing we can do at the moment.
