CNX-Bank Index-Technical View-16-10-14

CNX-Bank Index closed at 15751.55 on 14-10-2014

SUPPORT: - 15742.05 / 15725.80 / 15626.90 / 15592.80 / 15503.40 / 15392.25 / 15370.70 / 15320 / 15168.40 / 15130.35 / 15109 / 14858 / 14709 / 14670 / 14338.

RESISTANCE: - 15795.65 / 15843.70 / 15973.35 / 16208.55 / 16272.35 / 16309.70.

  (Figures in bold are important)

Index opened with a up gap today at 15790.95 and made a high of 15843.70 for the day and low of 15560.25 before closing the day at 15751.55.It is exhibiting strength ,it has made a short higher bottom at 15301.65 ,furthermore  today it has moved above its short term moving averages upper band  also but it has to be seen that whether it  stays above it for the next 3-4 days or not ,if it does then we could see a reasonable up- move to the level of  15973.35/ 16015 / 16208.55 & 16309.70 and if not then   the down move will continue again. The range for the short term DMA is between 15724—15493 (it changes every day)for 16-10-14.Therefore I would try  long call only if it sustain above the DMA upper band i.e.15724 for next 3-4 days and certainly avoid short call till it is  above the lower band of the DMA i.e.15493 therefore for me it is a wait and watch for at least 2-3 trading days before initiating any trade on either side, but  aggressive trader can try long call now or on dip with a stop loss of close below 15490.

REMARK:- Long term trend is still up, I would suggest to wait and watch for at least 2 -3 trading days before initiating any trade in it.

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