CNX-Bank Index-Technical View for-17-9-14

CNX-Bank Index closed at 15844.10 on 16-9-2014

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

RESISTANCE: -  15891.75 / 15973.35 / 15982.50 / 16049.25 / 16084.20 / 16208.55 / 16222.55 / 16309.70 / 16340 / 16428 / 16580—16720.

  (Figures in bold are important)

Index opened on a flat to negative note at 16160.70 and made a high of 16169.60 for the day and thereafter went down sharply and then made a low of 15814.65 before closing the day near the low at 15844.10. Today it has broken down all its short term moving averages and broken recent short bottom of 16049.25 and important bottom of 15891.75 too thereby giving clear signal that a reasonable to big fall is in the offing and the possible level from where it can bounce back are 15694 /15513 / 15320 &15108 but good bottom exist at 15448.90 / 14857 & 14709. Since it is below all its short term moving averages therefore I suggest to avoid long calls till it bounces back at least above the lower band of the DMA range and stays , the range for 17-9-14 is between 16112---15901(it changes every day)I would prefer to initiate long trade only if it moves above the upper band of the short term DMA or near the critical support area(see support and resistance) with an adequate stop loss.Kindly note that going up it will face good resistance at 16112 / 16222.55 / 16263 &16330.

REMARK:- Long term trend is still up, but down correction has set in therefore avoid long trade completely till it bounces back above the upper band of its short term DMA range and stays. 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