CNX-Bank Index-Technical Overview--13-10-14

CNX-Bank Index closed at 15453.80 on 10-10-2014

SUPPORT: - 15392.25 / 15370.70 / 15320 / 15168.40 / 15130.35 / 15109 / 14858 / 14709 / 14670 / 14338.

RESISTANCE: - 15503.40 /15592.80 / 15626.90 / 15725.80 / 15742.05 / 15795.65/ 15973.35 / 16208.55 / 16272.35 / 16309.70.

  (Figures in bold are important)      

            

After a long  holiday  index opened the week under review on a weak note  at 15214.25 on 7-10-14 and the next day it went down further and made a low of 15130.35 and thereafter staged a smart recovery and  made a high of 15795.65 on 9-10-14 but could not sustain at that level and went down the next day and closed the week at 15435.80.As of now it is comparatively looking  better on the chart then nifty but it is still weak.

Technically it has shown better strength then nifty in last 3 days trade but it is still not out of danger, as it is still below its upper band of the short  and medium term moving averages , therefore I would avoid long trade till it bounces back above its short and medium term averages upper band and stays for 3-4 days, the range for averages is between  15835---15438(it changes every day) for 13-10-14. I would prefer to go short on the rise with a stop loss of close above 15850 or below 15370 with a stop loss of 15480.Please note that some important technical parameter suggest that it may test the range of 14700-800 in coming days. The range of 15168—109 is a good support area for it as of now. Please also note that avoid long trade if it stays  below 15168 for the month of Oct-14.however  contrarian and aggressive  trader can try long call near the critical support area of 15370 / 15168  & 15109 with an adequate stop loss.

REMARK:- Long term trend is still up, but since it below its all short and medium term moving averages therefore long trade is completely ruled out till it bounces back above it again and stay for 3-4 days ,I would suggest to go short on the rise with a stop loss of close above 15850. 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