BSE-Sensex closed at 27208.61on
24-12-2014
SUPPORT: - 27160 / 26997/ 26795 / 26469.
RESISTANCE: -27324
/ 27372 / 27526 / 27646 / 27740 / 27851.10 / 27924 / 27980 / 28268 / 28823.
(Figures in bold are important)
BSE-Sensex opened on a flat to
positive note at 27530.26 and made a high of 27571.25 and then went down sharply in last hour trade and
made a low of 27146.52 for the day before closing the day near the lower end at
27208.61.It had two strong down days in a row and,today it has filled the up gap
it created on 19th Dec-14 but the up gap of 18th Dec-14 still exist and
if the on going down move continues for another 2-3 days then it may make an effort to fill this gap too and if it does then it may come down
to 26871 level Chances of which are looking reasonably good, going down it can
find support at 27160 / 26997 & 26795 and if it fails to
hold the level of 26997 & 26795 then it can break the bottom of 26469.42 it
made on 17-12-14 which is a distinct possibility.Therefore I would suggest to avoid long call completely as of
now and below 27140 on 26-12-14 for sure
instead short call can be tried on the rise at appropriate level and with a
proper stop loss. Going up it will have resistance at 27646 / 27924 & 28268.
TECHNICAL VIEW
Today it has broken its short term
moving averages range which is a bad sign and the range for it is between 27802-----27268(it
changes every day) for 26-12-14.
Some other technical parameters have
also started showing sign of weakness and indicates that if weakness continues then
it may break 26100 level in coming days
I would also like to mention here
that the long term moving averages range is between 26640---25230(it changes
every day) for now and if it breaks the
upper band of the range then it will be first sign of threat to the long term up trend and breaking
of the lower band of the range and staying there would be a great concern to
the up-trend, therefore if the up- trend has to stay then it cannot remain
below even the upper band of the moving averages range for a longer period. So
be watchful if it falls within this range.
Since it is running below its short term moving averages and
other technical parameters are also becoming weak therefore long call should be
completely avoided till it bounces back above its short term moving average
upper band and stay or if it crosses the recent top of 27851.10 it made on
23-12-14,if it fails to do so fast then it may have reasonable to significant
fall in coming days . Kindly note that long position should be tried and build
up if it falls within the long term moving average range with a stop loss of
below 25100.
REMARK:- :- Long term up trend is intact but since sensex had two
strong down day in a row ,so it is suggested to avoid long call for now till
this on- going fall is arrested.
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
No comments:
Post a Comment
Thank you for sharing your views.