CNX-Bank Index-Technical Overview(19-6-14)

CNX-Bank Index closed at 15220.40 on 18-6-2014

SUPPORT:- 15083.90 / 15030 / 14858.90 / 14793/ 14709.30

RESISTANCE: 15350 / 15373.20 / 15464.85 / 15567.40

Index opened on flattish to positive note and made a high of 15461.55 for the day but did not sustained above the short term DMA of 15357.94 and went down sharply and hit a low for the day at 15128.45 before closing down at 15220.40.this move signifies that correction is still on.

Technical View:-Index is making lower top and bottom on the line chart and technical parameters are showing negative divergence on the daily chart and if it comes into play then it can drag down the index to 14790 level in days to come, but I always say that divergence should be viewed in sync with moving average placements and not in isolation. Since nifty is below short term DMA therefore I am apprehensive that the negative divergence could play spoil sport .

The divergence could only be negated if index goes above short term DMA which is placed at 15350 for 19-6-14 and stays and close reasonably above 15373.20, or if it could close above today’s close of  15220.40 on 19-6-14 and then crosses 15373.20 &15464.85 the next day and close above this, on the other hand if index breaks 15030 level and closes below this and finally goes below 14858.90 then the negative divergence will come into play

REMARK:- Avoid long calls till the clarity on  down correction completion is visible.however if any one want to take a long call the stop loss would be 15070.

  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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