CNX-Bank Index closed at 17830.55 on 16-12-2014
SUPPORT: - 17557 / 17202 / 16561 / 16157 / 15973 / 15477 / 15301 / 15130.
RESISTANCE: - 17890.85 / 17898.40 / 18183 / 18313.10 / 18532.90 / 18615.40 / 18875.45.
(Figures in bold are important)
Index
opened on a negative note at 18249 and made a high for the day at 18308.95 and
thereafter went down relentlessly and made a low of 17770.35 before closing the
day near the low at 17830.55 .Today’s movement was devastating and it was a
complete breakdown day which is indicative of deep and painful
correction in the offing in coming days, however in between pull back up rally
could be there but it is not expected to go beyond 18330 level in the up rally as of now ,it is therefore suggested not
to try long call for taking advantage of pull back rally and avoid long call
completely till clarity on bottom formation emerges , instead short can be
tried on the rise at appropriate level and with a proper stop loss or for
17-12-14 below 17770 with a stop loss
of 17840 for a target of 17530 . Going down it will find support at
17444 / 17002 / 16560 / 16066 from where it could bounce back. Looking at the
technical parameters it seems that it is heading for reasonable to significant fall in
coming days.
REMARK:- :- Long term trend is up but since it is in correction
mode therefore avoid long call completely
till it gives visible sign of correction completion, instead try short call on
the rise off course with proper stop loss .
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
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Thank you for sharing your views.