CNX-Bank Index-Technical View For---7-1-2015

CNX-Bank Index closed at 18430.75 on 6-1-2015

SUPPORT: - 18428.10 / 18334 / 18137 / 18051 / 17968 / 17890 / 17546 / 17502.

RESISTANCE: - 18676.10 / 18728.20 / 18736.75 / 18875.45 / 18923.60 / 19166.

(Figures in bold are important)

Index opened with a 113.10 point gap down at 18874.60 and the open was the high also and thereafter it went down sharply and made a low of 18388.35 before closing the day at 18430.75. Today it went down by a whopping  586.65 points  putting a break on the on -going momentum and this down correction may deepen in coming days ,therefore long trade should be completely avoided till it moves above 18740 and stays  or it gives ample indication of correction completion .I would therefore suggest to try short call on the rise with a stop loss of above 18740,one can try short call below 18428 also for the remaining week  with a stop loss of above 18450 for a target of 18130 & 17900.

 REMARK:-  :- Long term up trend is still intact. Today’s move has broken the on -going momentum therefore long trade is completely ruled out till bottom formation sign emerges, instead short call should be tried  on the rise  or below 18428 for the  remaining week with a proper stop loss as mentioned above. 

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.