CNX-Bank Index-Technical Overview--3-11-14

CNX-Bank Index closed at 17045.05 on 31-10-2014

SUPPORT: - 17045/ 16561.35 / 16470.85 / 16309.70 / 16157.05 / 15973 / 15742.05.

RESISTANCE: - 17060 / 17200 / 17450 / 17680.

(Figures in bold are important)

Index opened firmly at 16812.45 and immediately made low of 16783.65 for the day and thereafter consistently moved up during the entire day and made new all time of 17060.15 before closing the day near the high at 17045.05.Technically it is showing tremendous strength but today’s up move some what seemed to be euphoric and this may continue for few days but it is concerning and indicate that we may be topping out for the time being in the next few trading session and correction may set in, therefore trade cautiously. Since it looks robust on technical chart as of now, therefore I suggest to adopt buy on dip strategy but get alerted in long trade below 16700 and exit long position if it closes below 16550. Going up it can face very stiff resistance at 17200 / 17450 & 17680 levels and I feel that  this up rally may exhaust around these levels. So I expect that the index may go in for correction by the middle or end of the next week starting from 3-11-14,therefore,I would suggest that one should at least  book part profit on the rise on existing long trades.

REMARK:- Long term trend is still up, I suggest to buy on dip with a stop loss of close below 16550.Avoid fresh long trades below 16700 .

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