Tuesday, 16 December 2014

CNX-Bank Index-Technical View---17-12-14

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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