CNX-Bank Index-Technical View For-5-9-14

CNX-Bank Index closed at 16033.55 on 4-9-2014

SUPPORT: -15973.35 / 15790.25 / 15742.05 / 15740.40 / 15626.90 / 15592.80 / 15503.40 / 15448.90 .

RESISTANCE: - 16208.55 / 16265 / 16330 / 16413 / 16580—16720.

  (Figures in bold are important)

Index opened flat to negative at 16102.90 and made a  high for the day at 16114.75 and thereafter it gradually moved down and made a low of 15926.65 before closing the day at16033.55. Today’s move  indicate that may be correction has set in as expected but in bull market correction don’t last for too long therefore the possible correction completion points are 16029 / 15918 / 15828 / 15739 / 15638 from where index can bounce back. Kindly note that if it breaks the 15638 point and stays then there could be potential threat of it going down further and sharply too, as of now chance of which are looking weak. Therefore it is still  buy on dip market but with caution and  one should get alerted in long trade if it starts trading below15925  and exit long trade if it closes below 15480 and stays. Kindly note that going up it will face good resistance at 16208.55 / 16263 &16330.

REMARK:- Long term trend is still up, possibly correction has set in today therefore use the aforesaid level and support and resistance points as entry,exit and traling stop loss point in your trade.I suggest to buy on dip but with caution and  at appropriate level with an adequate stop loss. 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