CNX-Bank Index-Technical View-24-9-14

CNX-Bank Index closed at 15902.85 on 23-9-2014

SUPPORT: - 15891.75 / 15790.25 / 15770 / 15742.05 / 15740.40 / 15626.90 / 15592.80 / 15503.40 /15448.90 .

RESISTANCE: - 15973.35 / 15982.50 / 16049.25 / 16052.55 / 16152.50 /  16208.55 / 16239.70 / 16272.35 /16309.70 / 16434 / 16568 / 16634.

  (Figures in bold are important)

Index opened on a flat note and made a high of 16240.55 for the day and thereafter moved in a range for some time and nose-dived in the late afternoon and made a low of 15894.55 before closing the day near the low at 15902.85.Today’s move was thoroughly disappointing. kindly note that it did not sustain above the short term moving averages for 2-3 days when it bounced back above it on 18-9-14 (see my post for 19-9-14) and it fell below all its short term moving averages again on the 3^rd day today which shows gross weakness in it and indicate further fall in  days to come.

 Furthermore it made two attempt to cross the previous all time high of 16309.70 but could not therefore it seems that the potential top is in place for now and it will be difficult for the index to cross it for some time.

Since it is below its all short term moving averages therefore long trade is a complete avoid for me until and unless it bounces back above it again and stay for 3-4 days. The range for short term DMA is between 16087-----15960(it changes every day) for 24-9-14.Please note that if it fails to hold the level of 15896 then it is expected to break the bottom of 15770.80 it made on 18-9-14  and  thereafter may break the bottom of 15503.40 & 15448.90 also. One can try short call on the rise with an adequate stop loss. Going up it will face good resistance at 16272.35 & 16309.70.

 REMARK:- Long term trend is still up, but since it below its all short term moving averages therefore long trade is completely ruled out till it bounces back above it again and stay for 3-4 days ,on the contrary one can try short call here on the rise with a stop loss of close above 16170. Avoid impulsive trade .

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS

Note: Price stated here is of spot market

Contact me for strategic guidance to enter and exit the trade