(BANKNIFTY WEEKLY CHART)
In above Banknifty Weekly chart, one can see how MACD respects its trendline and offered great opportunity to trade. It signals that every dip is buying opportunity till the trendline is not broken down.
Recently it has activated buy mode when banknifty price decisively moved above the long term trendline (shown in black) around 17000-17100 with the positive crossover just above the longterm MACD trendline (shown in green) and till date made high of 17676.
Before this MACD tendline (shown in green) given buy singal around 11900-12000 when it has given positive crossover just above the trendline.
Now on downside it has support around 16800 and on upside resistance near 17790----17860
NOTE: FOR PAIR TRADING VISIT: http://justbankniftystock.blogspot.in/