CNX-Bank Index-Technical View---22-1-2015

CNX -Bank Index closed at 19843.25 on 21-1-2015

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 on a positive note at 19811.85 and made a low of 19803.15 and a new all time high of 19964.95 and closed the day at 19843.25. Technically it is showing all the strength therefore buy on dip strategy to continue, but since it is vertically moving up so its vulnerability for correction is also very high. Therefore the long trade should be handled with utmost care and caution. Please note that since it had a vertical rise it may encounter profit booking anytime, furthermore it may go in for moderate correction if it breaks 19700(it changes every day) level, therefore stop loss for long trade would be below 19700 for 22-1-2015.

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.

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