CNX-Bank Index-Technical View--26-12-14

CNX - Bank Index closed at 18535.35 on 24-12-2014

SUPPORT: - 18532 / 18413.75 / 18356.30 / 18313.10 / 18301 / 18183 / 18109.35 / 18051 /  17890.85 / 17546.70 / 17502.45.

RESISTANCE: - 18676.10 / 18875.45 / 18923.60.

(Figures in bold are important)

Index opened on a flat to negative note at 18582.75 and made a high of 18709.15 and in last hour trade it moved sharply down and made a low of 18493.30 before closing the day near the low at 18535.35.Although it had two down day in a row but it is still exhibiting  good strength in comparison with nifty. Please note that the gap it had left going up on 18^th & 19^th Dec-14 still exist and if the down day continue for next 2-3 days then it may make an attempt to fill these gaps and if it does then it can come down to 18051 level, but as of now technically it is looking o.k therefore existing long position could be held on to and get alerted only and avoid fresh long call if it breaks 18470 and stay and exit long trade if closes below 18280. Going down it can find support at 18380 / 18213 / 18045 & 17837 and moving up it will have resistance at 18589 / 18676.10 / 18876 & 18924.

REMARK:-  :- Long term trend is  up ,Technically looking o.k but since it had two down day in a row therefore avoid long call if it trades below 18470 on 26-12-14.I would suggest to take fresh long call above 18876.

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

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