CNX-Bank Index-Technical Overview For The Week Starting From-23-6-14

CNX-Bank Index closed at 14997.65 on 20-6-2014

Range for the week ended 20-6-14  was :-15461.55----14858.90

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

RESISTANCE: - 15373.20 / 15461.55 / 15464.85 / 15568.05 / 15660.05 / 15725.80 / 15742.05

Index moved in the range of 600 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 15030 so the lower top and bottom chain on line chart still continues and this indicates that the deep down correction in the index could happen in the coming week.

TECHNICAL OBSERVATION:- Index is still making lower top and bottom on the line chart but on the bar chart it had made lower tops but has not breached the recent bottom of 14858.90 yet. The technical parameter is showing negative divergence on daily line chart which indicate that index could break the level of 14793, since it is also way below its short term DMA of 15273 for 23-6-14 therefore it is expected that it will break the bar chart recent bottom of 14858.90 and this break could trigger deep down correction, going down good support levels for index are at 14858.90 / 14709.30 / 14468.10 / 14301.30 / 14063.60.from where the index could bounce back. The range of 14058-14308 is having a bottom at 14063.60 and cluster of moving averages therefore this is a huge support area for index but if it starts trading below this level then one has to think otherwise, chances of which are looking very slim at this point of time. To regain strength and upward momentum again it has to go above its short term DMA and stay there for a reasonable period of time.

MY VIEW:-
1. Deep correction looks imminent
2. Index is expected to break level of 14858.90 & 14793 in the coming week.
3. In best case scenario index could complete correction in the range of 14450-14600.
4. In worst case scenario index could complete correction in the range of  14200-14350.

REMARKS:-Long term up trend still intact but avoid long calls till the clarity on down correction completion is visible. 

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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