CNX-Bank Index-Technical View--14-1-2015

CNX-Bank Index closed at 18707.20 on 13-1-2015

SUPPORT: - 18630 / 18428 / 18211.50 / 18183 / 17968 / 17890 / 17546 / 17502.

RESISTANCE: - 18728.20 / 18736.66 / 18875.45 / 18941 / 19166 / 19385.

(Figures in bold are important)

Index opened with a gap up at 18889 and made a high of 18920.65 and thereafter was moving in a range throughout the day before plunging down in the last hour of trade and made a low of 18642.80 and closed the day at 18707.20. It could not sustain the critical point of 18740 and closed below it, today’s move was disturbing and indicative of some weakness. I would therefore suggest to avoid fresh long call completely till it closes above 18740 and sustain it for at least 2-3 days, however those who are still holding long trade should not add fresh long trade in any case and get alerted in long trade if it consistently starts trading below 18630 and exit long trade if it  gives sign of closing  below 18540.

Going up it will resistance at 18740 / 18876 / 18941 / & 19166 and moving down it will have support at 18428 & 18211.50.

Kindly note that profit should also be booked in trade from time to time at the appropriate points so that you can take advantage of the market swings.

REMARK:-  :- Long term up trend is intact. Since it has closed below the critical point of 18740, therefore long call is completely ruled out till it closes above it again and stays their  for at least 2-3 days.

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.