CNX-Bank Index Technical View For The Week Starting From-7-7-14

CNX-Bank Index closed at 15556.15 on 4-7-2014

Range for the week ended 4-7-14 was :-15582.65----15059.10

SUPPORT: - 15556 / (Recent Closing Bottom) 15451.65 / 15288.80 / 15241.90 / 14946 / 14940.35 / 14857 / 14709.30 / 14468.10 / 14301.30 / 14063.60

RESISTANCE: - 15568.05 / 15582.65 / 15660.05 / 15725.80 / 15742.05 / 15927 / 16266.

(Figures in bold are important)

Index moved in the range of 523 points during the week under review and closed the week near the highest point of the range which indicates firmness and suggest that it is expected to continue the up move in the coming week starting from7-7-14 as well .The slightly disturbing thing is that the index is under performing off late in comparison with the nifty, whereas nifty has made new high every day from 2-7-14 to 4-7-14 but index has failed to cross its previous high of  15742.05 , I expect it to regain the momentum and keep pace with the nifty  in the coming week and cross its previous high. The index is making higher top and bottom on the line and the bar chart and it is also above its all important moving averages therefore technical parameters suggest that the up move should continue going up the tough resistance point would be 15725.80 & 15742.05 which it is expected to cross. The important support level for holding the long trades are 15451.65 on the closing basis and 15288.80 & 15241.90 for the month of July-14 and off course the short term DMA which is placed at15270for 7-7-14(it keeps on changing every day). Please note that if index starts trading below 15451.65 and closes below this then get alerted and reduce long exposure and below 15288.80 & 15241.90 avoid long calls completely in index till it bounce back above this level again.

 REMARKS: Long term up trend intact. I strongly suggest to  buy on dip. Kindly note that make your cost your stop loss in favorable trade and then trail it as the price moves up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit and trailing stop loss points.

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. 

 Contact me for strategic guidance to enter and exit the trade