CNX-Bank Index-Technical Overview For The Week Starting From-30-6-14

CNX-Bank Index closed at 14992.35 on 27-6-2014

Range for the week ended 27-6-14 was :-15341.95----14940.35

SUPPORT: - 14940.35 / 14858.90 / 14709.30 / 14468.10 / 14301.30 / 14063.60

RESISTANCE: - 15341.95 / 15461.55 / 15464.85 / 15568.05 / 15660.05 / 15725.80 / 15742.05

Index moved in the range of 400 points during the week under review and closed the week near the lowest point of the range which indicates weakness, furthermore the close was below the previous closing bottom of 14997.65 so the lower top and bottom chain on line chart continues and this indicates that the deep down correction in the index could happen in the coming week.

TECHNICAL  VIEW:-

1. It is making lower top and bottom on the line chart and still going down, to make higher top it has to cross and close above the recent top of 15309.50 & 15373.20 and to make higher bottom it has to create a bottom first since it is still going down on the closing basis, till then it should hold the level of 14793.40.

2. To make higher top & bottom on the bar chart it has to cross the recent top of 15341.95 & 15461.55 and hold the bottom 14940.35 or 14858.90 or 14709.30

3. It is still below its short term DMA which is placed at 15255 for 30-6-14(it changes every day), index to remain buoyant has to stay above its short term DMA..

4. The negative divergence is still there indicating that it can break the level of 14793.40.

5. The cluster of important averages are in the range of 14500-14250 for the start of the week i.e.  30-6-14 ,since it is increasing every day so by the end of the coming week the range would be 14690-14440.Index has to hold this range ,if it does not then it will be a cause of concern for the intermediate uptrend.

CONCLUSION: Index has to fulfill the above stated first 3 condition to negate the divergence and to confirm that the ongoing correction is over, if it does not then the correction may deepen and then the worst range for the index could be the important average range of 14690-14440 during the next week end and to keep the intermediate uptrend intact it has to hold this range, chances of which are looking reasonably good as of now. I feel that index possibly would complete the correction by next week and in the best case scenario it could bounce back from the range of 14650-14550 and in the worst case from the range of 14500--14300.

REMARKS: The month of June-14 would be ending on Monday, the month end will provide us with the indicative range for the month of July-14 and possible direction also and that will help us to make the trading relatively easy , therefore I suggest  not to trade at all on 30-6-14.

NOTE:

1.        PRICE STATED HERE IS OF SPOT MARKET.

         2. RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.
          3. IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL   PROTECTION. 

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