CNX-Bank Index-Technical View for-10-11-14

CNX-Bank Index closed at 17347 on 7-11-2014

SUPPORT: - 17087 / 17060 / 17045 / 16560 / 16309.70 / 16157.05 / 15973 / 15742.05

RESISTANCE: - 17425.20 / 17490 / 17640 / 17800 & 18060.

  (Figures in bold are important)

Index opened flat to positive at 17366.80 and made a high of 17383.60 but could not cross the previous day high of 17425.20 and made a low of 17202.20 during the day  before closing at 17347.Technically it is still OK and suggest buy on dip but since it had a phenomenal rise of around 2300 points in 18 trading days therefore caution is advised on long trade because it may correct from here and if correction sets in it could be severe one.

As you are already aware that index at present is moving in a channel and the range for it is between 17790---17130(it will move up every day) for 10-11-14,  since it is near the lower range and may  break it and if it does then it will trigger  correction therefore traders are advised to book at least part profit in long trade here and on the rise and near the upper band of the range for sure i.e 17790 and re- enter again near the lower band i.e.17130 with a stop loss of below 17045 till the breakout happens. I would suggest to avoid fresh long position if it consistently starts trading below 17030 and re-enter only if it moves above 17087 and stays with a stop loss of below 17020 for the entire month of November-14.Please avoid fresh long trade below 17425.20 & 17130 on 10-11-14 for sure. Going up it will face stiff resistance at  17490 / 17640 / 17800 &17780 level and I reiterate that  this on- going rally may exhaust around these levels and correction may set ,since we are not far away from these levels therefore extreme caution is advised on long trades. 

REMARK:- Long term trend is  up ,therefore buy on dip is suggested at appropriate levels  and with an adequate stop loss ,but avoid long trade  below 17425.20 & 17130 on 10-11-14. Trade cautiously because correction looks imminent.

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.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Note: Price stated here is of spot market

Contact me for strategic guidance to enter and exit the trade