Bank Nifty Path Ahead using ADX and Ichimoku Cloud

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Banknifty has been moving precisely as per neo wave count. Checkout this example of how we applied ADX and Ichimoku cloud with Price Action to identify the wave counts and predict the price movement.

Following research is picked up from daily equity research report – The Financial Waves short term update

Bank Nifty Daily chart

Bank Nifty 60 mins chart

Wave analysis:

In the previous session, on the daily chart prices formed neutral candle. We can see that Index is consolidating in a range of 43500-44150. Any breakout of the range is needed to understand a bigger picture. ADX is trading at 21 suggesting lack of trending move and giving us hints of range bound action.

On the hourly chart, we have applied Ichimoku cloud. Wherein we can see that prices have just given a close above the cloud which is a positive sign. However, confirmation is still pending for which we need follow up action.  Along with this, MACD is showing positive crossover but further price action is required to confirm the same. Overall indicators are giving us hints of possible up move. Any move above 44150 can confirm completion of wave (b) on the downside and then the up move will be in form wave (c).

In short, Bank Nifty is trading in between a range of 43500-44150. A break above 44150 can lift the price higher towards 44500. Whereas any move below 43500 can drag price lower towards 43150.

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