Wednesday, 14 January 2015

CNX-Bank Index-Technical View---15-1-2015

CNX-Bank Index closed at 18603.80 on 14-1-2015

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

RESISTANCE: - 18638 / 18728.20 / 18736.66 / 18875.45 / 18941 / 19166 / 19385.

(Figures in bold are important)

Index opened on a negative note at 18670.40 and made a high of 18769.65 and a low of 18517.90 before closing the day at 18603.80.It again get past the critical point of 18740 today but could not close above it which shows growing weakness in it and if it does not close above 18740 level in next 2-3 days and stays then it may start moving down for a reasonable to significant correction. I would therefore suggest to avoid fresh long call completely till it closes above 18740 and sustain it for at least 3-4 days, however those who are still holding long trade should exit trade below 18550.In fact short call can be tried if it consistently maintain below 18630 or below 18720 with a stop loss of above 18670 and 18780 respectively for a target of 18428 & 18211.

Going up it will resistance at 18640 / 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 is still below its critical point of 18740, therefore long call is completely ruled out till it closes above it again and stays there for at least 3-4 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.



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