CNX-Bank Index-Technical View For--7-11-14

CNX-Bank Index closed at 17352.95 on 5-11-2014

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

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

  (Figures in bold are important)

Technically index seems to be on a very strong footing and exhibiting much greater strength in comparison with nifty and indicate that the on- going up move may continue for few trading session, therefore I suggest to adopt buy on dip strategy but since it had a vertical rise of almost 2300 points in 18 trading session therefore  caution is advised on long trade because if correction sets in it could be severe.

At present index is moving in a channel and the range for it is between 17710--17020(it will move up every day) for 7-11-14, break out on either side will decide whether the rally will continue or correction will set in, therefore traders are advised to book at least part profit on the long trade near the upper band of the range i.e 17710 and re- enter again near the lower band i.e.17020 with a stop loss of below 16980 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 and avoid long call below 17150 on 7-11-14. Going up it will face stiff resistance at  17490 / 17640 / 17800 &17780 level and 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. TRADE CAUTIOUSLY AND RESPONSIBLY.   

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