CNX-BANK INDEX--Technical View--16-2-2015

CNX-Bank Index closed at 19369.70 on 13-2-2015

SUPPORT: - 19166 /18923.60 / 18736.65 / 18728.20 /18428 / 18226 / 18211.50 / 18183 / 17890 / 17502.45.

RESISTANCE: - 19445 / 19568 / 19778.95 / 19844 / 19884 / 19992 / 20275 / 20610 / 20907.55. 

Range for the week ended 13-2-2015:-18226.90---19441

(Figures in bold are important)

Index had a good run during the week under review and closed the weekend with good gain at 19369.70 .It is showing strength on the technical chart but it will gather real momentum if it moves above 19575 on 16-2-2015 and stays, however fresh long call can be initiated above 19445 with a stop loss of below 19340 .I would like to mention here that going up it can face  resistance  at 19575 / 19780 / 19884 / 20275 &20610 and if it manages to cross 20275 mark  and stays then it can possibly surpass the previous all time high of 20907.55 in coming days, chances of which are looking 50:50 as of now because its retracement speed is much slower in comparison with Nifty & BSE-Sensex . Please note that the authentic stop loss for positional long call would be below 19220 as of now (it keeps on changing with price movement). Its critical support levels are at 18923.60 / 18736.65 & 18728.20 below these points long call should be completely avoided.

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. 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.