CNX-BANK INDEX---Technical View---23-2-2015

CNX-Bank Index closed at 19073.55 on 20-2-2015

SUPPORT: -18923.60 / 18882 / 18876 / 18875 / 18736.65 / 18728.20 /18428 / 18226 / 18211.50 / 18183 / 17890 / 17502.45.

RESISTANCE: - 19166 / 19225 / 19445 / 19533 / 19568 / 19778.95 / 19844 / 19884 / 19992 / 20275 / 20610 / 20907.55. 

 (Figures in bold are important)

Index moved in a range of 656 points during the week ended on 20-2-2015 but it had wild swings both ways almost every day during the week, furthermore it broke its critical support level of 18923.60 on two successive days but managed to close above it and finally closed the week at 19073.55. It is showing tremendous weakness on the technical chart furthermore moving up it will face stiff resistance in the range of 19121---19455---19850 therefore it is suggested to avoid long call now till it starts exhibiting some strength, please note that it has critical support at 18923.60 and at recent bottom of 18875 so for those who want to try long call the stop loss would be below 18875 but avoid fresh long call below 18923.I would advice to sell on the rise but below 19535 with a stop loss of above 19640 or sell below 19050 with a stop loss of above 19125.The bias is on downside as of now.

    

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. I would advice not to initiate long trade till it starts showing some strength instead short 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.