NIFTY CLOSED AT 8105.50 ON 12-9-14
SUPPORT: - 8105.50 / 8049.85 /7990.35 / 7984 / 7968.25 / 7954.35 /7855.95 / 7840.95
/ 7808.85 / 7700.05 / .
RESISTANCE:- 8141.90 /
8180.20 / 8210 / 8294 / 8330.
(Figures
in bold are important)
Nifty opened the week under review
with an up gap at 8132.95 and made a new all time high at 8180.20 and
thereafter went down and made a low of 8057.30 before closing the week at 8105.50. This week’s move was not encouraging
and give some indication that nifty may go in for bigger correction in days to come,
if it breaks the recent bottom of 8049.75 and stays below it but as of now it
is still in momentum, however one should be circumspect in long trade for now. The
long term trend is still up but since it is below the upper band of the short
term DMA range, therefore I suggest to avoid long trade till it bounce back
above it and stays.
TECHNICAL VIEW
ON DAILY CHART:-It
is showing some weakness as it has broken the short term trend-line drawn from
the bottom of 7540.10 ,furthermore it is also below the upper band of the short
term DMA range for last three days and the range for 15-9-14 is between 8110--7979
(it changes every day).Therefore one should avoid fresh long trade till it
bounces back above the short term DMA upper band i.e. 8110 and stays but for
those who are already having long position can hold on to it and get
alerted if it starts trading below 8054
and exit long trade if it closes below 7979 and stays.
Please note that it has recently made bottom
at 8049.75 therefore I suggest to avoid fresh long call below this point for
sure. Kindly note that going up it will face good resistance at 8141.90 &
8180.20.
ON WEEKLY CHART:- It
is ok on the chart . Furthermore it is way above the upper band of the short term DMA range which is between 7891--7553(for
the next week) starting from-15-9-14.
Kindly note that there has been straight rise in the nifty
for last five weeks from 7540.10---8180.20 and since it below the upper band of
the short term moving averages on the daily chart and seems correcting, it may also correct on weekly
chart and may give 1 or 2 down week move. So be alert in long trade and avoid
fresh long trade completely below 8049.75 for the entire week.
REMARK:- Long term trend is still up, but
last week move indicate that it may go
in for bigger down correction ,if it does not bounce back above the short term averages or break
8049.75 level, so avoid fresh long call till it bounces back above the short
term DMA again, avoid long call completely below 8049.85 for sure.
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
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Thank you for sharing your views.