CNX-Bank Index-Technical View-7-10-14

CNX-Bank Index closed at 15316.20 on 7-10-2014

SUPPORT: - 15613.20 / 15270.95 / 15168.40 / 15109 / 14858 / 14709 / 14670 / 14338.

RESISTANCE: - 15370.70 / 15392.35 / 15503.40 /15592.80 / 15626.90 / 15636.45 /15725.80 / 15742.05 / 15770.80 / 15891.75 / 15973.35. 

  (Figures in bold are important)

Index opened on a negative note at 15370.70 and made a high of 15377.60 and low of 15270.95 for the day before closing the day near the low at 15316.20.Technically it looks much weaker in comparison with nifty. It is moving below its short term and medium term averages , therefore for me long trade is completely ruled out 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  15904---15470 for 7-10-14. I would prefer to go short on the rise with a stop loss of close above 15750.Please note that if it breaks the level of 15168 & 15109  and stays then it is expected to break the level of 14709 too, chances of which are looking reasonably bright as of now. Please also note that avoid long trade below 15270 for the entire week starting from-7-10-14 and below 15168 for the month of Oct-14.

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 15750. 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