CNX-Bank Index-Technical View-22-10-14

CNX-Bank Index closed at 16427.25 on 21-10-2014

SUPPORT: -  16309.70 / 16297.25 / 16272.35 / 16222.55 / 16208.55 / 15973.50 / 15843.70 / 15742.05 / 15725 / 15626.90 / 15592.80 / 15503.40 / 15477.05 / 15392.25 /

RESISTANCE: - 16222.55 / 16272.35 / 16297.25 / 16309.70 / 16625 / 16815 / 17060.

  (Figures in bold are important)

Index  opened on a firm note at 16281.95 and made  a low of 16269 and then moved up  and made  a new all time high of 16452.85 before closing the day near the high at 16427.25.It is exhibiting tremendous strength technically, therefore I would suggest to buy on dip  but get alerted in long trade if it starts trading below 16309.70 and get out of the trade if closes below 16150. Please note that the gap it left on 20-10-14 still exist and  today was the 1^st day after that ,so one has to be careful in next 2-3 days of trading, if it breaks the level of 16157 then it can go down to 15973 to fill the gap. Going up it will face good resistance at 16625 / 16815 & 17060.

REMARK:- Long term trend is still up, I suggest to buy on dip with a stop loss of close below 16150.

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