CNX-Bank Index-Technical View For-17-7-14

CNX-Bank Index closed at 15265.45 on 16-7-2014

SUPPORT: - 15241.90 / 15113.56 / 14965 / 14946.85 / 14858/ 14770  / 14709.30 / 14338.65 /  14063.60 / 13885 / 13489 / 13414.30 / 12738.60

RESISTANCE: -15288.80 / 15341.95 / 15568.05 / 15592.80 / 15725.80 / 15742.05/ 15930 / 16390

(Figures in bold are important)

Index in last three trading session moved up by 961.15 points, which is phenomenal, It gave a robust up move today and made a high of 15299.80 for the day before closing the day near the high at 15265.45. Please note that it had given gap up opening on 15th & 16^th July-14 and did not fill the gap as yet ,so if it opens with a up gap on 17-7-14 then watch the market for some time before taking any call  because after 3^rd gap it tries to fill the earlier gaps also most of the time, as the three gaps in a row  on the either side is a rare  phenomena . However today’s movement indicate that the on- going down correction may be over ,furthermore index has crossed all its short term moving averages today therefore as of now the negative divergence will take a back seat as long as it hold the range of short term moving averages which is between 15100--14978 for 17-7-14(it keeps on changing every day, I will keep on updating it).I would suggest long call in the index above 15241.90 &15288.80 ,but get alerted if it goes below 15241.90 & 15100 and get out of the long trade if it closes below 15022 and re-enter only if it move again above its short term DMA range and stays. Your stop loss for the long trade in index is close below 15022 for 17-7-14. 

 REMARKS:-Long term trend is intact. it seems that the on- going down correction may be over therefore one can take long call  above 15241.90 with a strict stop loss of below 15022 on closing basis for 17-7-14 . 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. DO NOT TRADE WITHOUT STOP LOSS

                                             Note:-PRICE STATED HERE IS OF SPOT MARKET 

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