CNX-Bank Index-Technical Overview--15-12-14

CNX-Bank Index closed at 18299.75 on 12-12-2014

SUPPORT: - 18183.10 / 18137 / 17890.85 / 17546.70

RESISTANCE: - 18313.10 / 18532.90 / 18586.95 / 18615.40 / 18676.10 / 18875.45.

  (Figures in bold are important)

Index opened on a flat to positive note at 18413.70 and made a high of 18501.75 for the day and thereafter moved down and made a low of 18236.55 before closing the day at 18299.75.It has started showing some weakness on technical chart, therefore, I feel that this on-going correction may deepen in coming days but it still seems to be better placed technically in comparison with Nifty.

Please note that it has broken the short term moving averages upper band and the range for it is between 18525---18060(it changes every day) for 15-12-14, furthermore other technical parameters have also started showing sign of weakness, I would therefore suggest to avoid fresh long call till it moves above the upper band of the short term average i.e.18525 and stays. For those who are still holding long trade can exit on the rise if index gives them a chance else they should exit if it starts trading below 18183.It is important to mention here that if index breaks this point and  fails to hold the level of 18137 then it could break 17900 mark, chances of which are looking reasonably good ,so avoid long trade if it trades below 18183 for the entire week starting from 15-12-14.

REMARK:-  :- Long term trend is  up but since it is in correction mode therefore avoid fresh long call till it gives visible sign of correction completion. Please exit long call if it starts trading below 18183,if not then below 18137 for sure.

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