CNX-Bank Index-Technical View For-19-9-14

CNX-Bank Index closed at 16156.85 on 18-9-2014

SUPPORT: -16049.25 / 15982.50 / 15973.35 / 15891.75 / 15790.25 / 15770 / 15742.05 / 15740.40 / 15626.90 / 15592.80 / 15503.40 / 15448.90 .

RESISTANCE: -  16208.55 / 16222.55 / 16254.15 / 16309.70 / 16340 / 16428 / 16580—16720.

  (Figures in bold are important)

Index opened on a negative note and made a low of 15770.80 and thereafter steadily moved up and made a high of 16173.80 for the day before closing the day near the high at 16156.85.Today’s move was hugely positive  and indicate that the correction is over , it also bounced back above all its short term moving averages in a single day but it has to sustain above it for 2-3 days to confirm that the   on- going correction is over for sure, if it does then a decent up side is expected .The range for  short term moving averages is between 16096---15920 for 19-9-14.However since it is above the short term averages therefore one can try long call on dip but get alerted in long trade below 16096 and exit long trade if it closes below 15920 and stays. Kindly note that going up it will face good resistance at16362 / 16495 & 16624.

REMARK:- Long term trend is still up and it seems that the down correction is over, therefore I suggest to buy on dip  with a stop loss of close below 15920. 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