CNX-Bank Index closed at 16216.60 on 20-10-2014
SUPPORT: - 16208.55 / 15973.50 / 15843.70 / 15742.05 /
15725 / 15626.90 / 15592.80 / 15503.40 / 15477.05 / 15392.25 /
15370.70 / 15301.65 / 15168.40 / 15130.35 .
RESISTANCE: - 16222.55 / 16272.35
/ 16297.25 / 16309.70 / 16625 / 17035.
(Figures in bold are important)
Index
opened
gap up at 16259.70 and made high of 16297.25 and then low of 16157.05 before closing the day
at 16216.60.It came very close to its all time high of 16309.70 but could not cross it was little disturbing,
however it is exhibiting good strength technically. Kindly note that the gap it
created today still remains and to fill it up index has to come down to 15973.50
level, generally the gap is filled in next 3-4 days ,if not then it is
difficult to say when this gap will be filled ,so the next 3-4 days trading is
very critical but since it is comfortably above its short term moving averages
therefore one can adopt buy on dip strategy with a stop loss of close below
15900.Since it did not cross its previous high after coming so close to it, therefore I would personally prefer to take
long call only if crosses 16309.70 and stays.
REMARK:- Long term
trend is still up, I would personally take
long call only if it crosses and stays above 16309.70 but one can buy on dip with a stop loss of below 15900.
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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