CNX-Bank Index-Technical View--23-1-2015

CNX-Bank Index closed at 19917.65 on 22-1-2015

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

RESISTANCE: - 20076 / 20387 / 20710 / 21097.

(Figures in bold are important)

Index opened on a positive note at 19898.50 and made a low of 19788.70 and thereafter made a high of 19964.25 and closed the day higher from the previous day at 19917.65. It came very close to its previous days high of 19964.95 but could not cross it and missed it by just .70 point, in the process it made a double top at 19964.95.Technically it is still looking good but if it does not cross 19965 mark in a day or two and stays below this then correction may step in, furthermore It is on an unabated rising spree for last few days therefore its vulnerability for correction is also very high at this point of time. I would therefore suggest to book profit on existing long trade (if not completely at least in part long trade) and take fresh long call only if it moves above 19965 and stays or after a reasonable decline. Please note  once again that since it had a vertical rise it may encounter profit booking anytime, therefore for the aggressive day trader it is suggested to avoid long trade if it consistently starts trading below 19850 on 23-1-2015 and stop loss for the long trade would be below 19750.

Going up it will resistance at 20076 / 20387 & 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, still buy on dip market but as of now,  I would advice to book profit on existing trade and  take fresh long call only above 19965 or on a reasonable decline.

 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.