CNX-Bank Index Technical View---21-1-2015

CNX-Bank Index closed at 19767.05 on 20-1-2015

SUPPORT: - 19723 / 19166 / 19061.35 / 18923.60 / 18875.45 / 18736.66 / 18728.20 / 18517.90 / 18428.

RESISTANCE: - 20076 / 20710 / 21097.

(Figures in bold are important)

Index opened with a minor up gap at 19446.80 and the open was the low also and thereafter it steadily moved up and made a new all time high of 19808.25 before closing the day at 19767.05.It had a robust up move today and it is exhibiting tremendous strength and indicate that the up move may continue therefore buy on dips strategy should still be adopted but with caution because it may encounter profit booking in the range of 19850—20076(valid for 21-1-2015) and it may correct from here,so the long trade should be handled with extreme vigil  and caution, and stop loss for the long trade would be below 19520.

Going up it will resistance at 20076 & 20710 and moving down it will have support at 19166 / 19061 / 18923 & 18728.

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. I would suggest to adopt buy on dip strategy with caution and proper stop losses.

 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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Contact me for strategic guidance to enter and exit the trade.