CNX-Bank Index--Technical View---13-2-2015

CNX-Bank Index closed at 19128.60 on 12-2-2015

SUPPORT: - 18923.60 / 18736.65 / 18728.20 / 18479 / 18428 / 18300 / 18211.50 / 18183 / 17890 / 17502.45.

RESISTANCE: - 19166 / 19445 / 19779 / 19844 / 19991.40 / 20610 / 20907.55 / 21097 / 21360.

(Figures in bold are important)

Index opened with a up gap at 19073.45 and made a low of 18739.85 and while making low it filled the gap also, it moved in a range for quite some-time and thereafter shot up and made a high of 19176.80 before closing the day at 19128.60. It held the critical level of 18923.60 pretty well and closed way above it today, which shows strength therefore this rally can extend to these levels 19252 / 19568 / 19779 / 19884 & 20275 before it get exhausted, here please note that if it manages to move above 19550 and stay then it will resume the real up momentum again. Therefore it is suggested to hold the existing long position with a stop loss of below 18923. Aggressive trader can try fresh long call above 19180 with a stop loss of below 19100 on 13-2-2015. Please note that below 18923 long call should be completely avoided.

Going up it will resistance at 19251 / 19570 & 19884 and moving down it will have support at 18923.60/ 18728 / 18403 / 18211 / 17890 & 17502.

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 still intact. It seems that the pull back rally is on therefore long call can be tried as suggested 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.