(BANKNIFTY WEEKLY CHART)
In above weekly chart, one can see banknifty has made 'Bearish Butterfly Pattern". This pattern gives target range of level 14800 to 16500. It has made high of 15742 till date and faced strong resistance and selling pressure near 15550-15750.
Weekly MACD has given negative crossover. Upside resistance 15150 and 15500. Downside support near 14700 and 14300.
here, the CD leg extends towards a 1.272 to 1.618 Fibonacci extension of the XA leg. Note, that Fibonacci extension can even be as far as 2.618 - but beyond that then the pattern is invalid.
NOTE: FOR PAIR TRADING VISIT: http://justbankniftystock.blogspot.in/